Nov. 9 (Bloomberg) -- Iranian President Mahmoud Ahmadinejad's foreign and domestic policies are exacerbating the country's economic troubles in a time of ``crisis,'' according to an open letter from 60 economists cited on state-run television.

The economists, including professors from universities and institutions around the country, criticized Ahmadinejad's ``tension-creating foreign policy,'' which has ``deprived the country of trade and foreign investment opportunities,'' satellite channel Press TV said on its Web site, citing extracts from the letter posted late yesterday.

The economists said that billions of dollars in costs are incurred as a result of UN Security Council sanctions that force Iran's trade to be conducted mostly through intermediaries.

The letter, published in Iranian newspapers today, is the third from economists criticizing Ahmadinejad's policies since he took office in 2005. Presidential elections are next scheduled for June 2009.

Iran is under three sets of economic and financial sanctions following the government's refusal to halt its nuclear activities, which the U.S. and its western allies accuse of being aimed at developing weapons. The government in Tehran rejects the claim, citing the need to secure energy for a growing population that already surpasses 70 million.

Energy projects in Iran, holder of the world's second- biggest oil and gas reserves, are suffering delays following U.S. pressure on international companies to cut back their involvement in the country. The Iranian government has played down the impact of sanctions, saying it possesses the necessary means and technology to proceed with its plans.

`Severe' Social Problems

The economists also warned against planned changes to Iran's subsidies system amid the global economic crisis, which is resulting in lower oil revenue for Iran. Ahmadinejad is pushing a program to cancel subsidies on energy and goods to redirect the cash as direct monthly payments to Iranians.

The plans may ``before creating stability, result in uncontrollable strq inflation and lead to severe economic and social problems,'' according to the letter published in full in Etemaad newspaper. Inflation accelerated to an annual 29.4 percent in September.

Oil revenue accounts for at least half the government budget and Iran risks facing a deficit amid falling prices. Crude oil futures on the New York Mercantile Exchange closed at $61.04 on Nov. 7 after rising to a record $147.27 a barrel in July.

To contact the reporter on this story: Ladane Nasseri in Tehran at lnasseri@bloomberg.net.

Last Updated: November 9, 2008 05:06 EST