Dhaka: Bangladesh's detained former Prime Minister Begum Khalida Zia has offered an olive branch to her rivals, saying it was time for the country's feuding politicians to work together to salvage the country from a severe crisis.

"We do not believe in conflict. All problems can be resolved through discussion. We want to cooperate with the government for free and fair elections with the participation of all political parties," Khalida's lawyer Sanaullah Miah quoted her as saying after a court appearance on graft charges on Wednesday.

"This is not the time for squabbling and differences... now is the time for salvaging the country through united effort," she said. "We will have to work together to help the nation tide over the crisis."

Khalida's Bangladesh Nationalist Party (BNP) and the Awami League headed by paroled former prime minister Shaikh Hasina ruled Bangladesh for 15 years until 2007, when the interim government took charge following months of political violence.

The interim authority, headed by former Central Bank governor Fakhruddin Ahmad, has promised to hold a parliamentary election in December to return Bangladesh to democracy.

Khalida and her two sons have been in separate jails since they were arrested last year for alleged graft and amassing wealth illegally.

Bid to lend credibility

The government is keen for both the BNP and Awami League - the country's biggest parties - to take part in the poll, which analysts say will not be credible without them. The government last month paroled Hasina for eight weeks, allowing her to travel to the US for medical treatment.

Khalida and Hasina have not spoken to each other for most of their years in power. But Khalida's offer of talks on Wednesday signalled a departure from her rigid stance, analysts said.

The interim government said it was working on plans to release Khalida and her sons soon after certain legal complications were sorted out but BNP leaders alleged the government was "buying time to implement a conspiracy to keep Khalida Zia out of the polls".