Prime Minister Khaleda Zia has warned of stern legal action against the Awami League for 'launching propaganda at home and abroad to project Bangladesh as a state of Talibans and fundamentalists.

Replying to questions in the Jatiya sangsad yesterday, she also accused the main opposition party of resorting to massive criminal activities as part of a blueprint to tarnish her government's image and also to trigger social unrest.

Elaborating her point on the alleged anti-Bangladesh campaign, the prime minister told the parliament that the foreigners knew it very well that Bangladesh is a moderate Muslim country and that the AL was a liar.

"They (the AL men) are sponsoring articles in newspapers to go about their ill-designed campaign, but those are not credible to the foreigners since they are pleased with the government's performance. They know Bangladesh has no Taliban or fundamentalists," said Khaleda as her attention was drawn to a Far Eastern Economic Review cover story headlined "Beware of Bangladesh".

A strong protest has been lodged against the Review's story, she informed the House. The prime minister warned that those involved in "information terrorism" would be punished. The AL is desperate following its isolation from the people since it lost the last general election and has asked its activists in different cities including Dhaka, Chittagong and Khulna to take up criminal activities, Khaleda said, analysing the reports in the press and of the government agencies.

"Leaders and workers of the party are being organised to harbour terrorism and create anarchy at the country's industrial belts, educational institutions and in the transport sector," the prime minister said. She also added the AL move was designed to cover up its political bankruptcy and failure of leadership.

Khaleda said the same party had made abortive bids to discredit the government both at home and abroad by persecuting the country's minority population. "But the government's timely action upset the move."

"A certain quarter stationed abroad is engaged in spreading falsehood against Bangladesh and its government. They are dishing out untrue and misleading information abroad only to harm the country and its people. To this end, they are using the Internet websites and getting articles published in foreign newspapers."

She said her government was determined to maintain law and order, and has already initiated legal action against those trying to create a situation. Referring to the move to enact a fresh law to check crimes like terrorism, extortion, tender manipulation, intimidation and vandalism, she expressed the hope that the law and order would improve once the proposed law is in force.

While in office the AL provided its activists with many illegal arms, which the police and the BDR are now trying to recover. "If necessary, we'll call out army for the illegal arms recovery drive."

Reaffirming her government's promise to ensure public order, Khaleda said the law-enforcing agencies have necessary information about the terrorists engaged in creating a law and order situation. "Legal actions have already been initiated against the lawbreakers. We're now working to ensure public safety by establishing rule of law in the country."

The prime minister further alleged that the previous AL government unleashed terrorism and plundered public wealth instead of saving the people in the past five years. "Now they are sponsoring information terrorism."

To a question about the graft charges against the AL government, the prime minister referred to the recently published white paper and said all corrupt people of the previous regime would be punished.

Asked about her election pledge to set up an independent anticorruption commission, Khaleda said such a body would be established with honest and qualified people at the helm.

"But it would not be wise to rush into things. That's why we are taking time," she said, adding that the authorities were acting against the corrupt officials of the Bureau of Anticorruption.