World Bank has postponed Dhaka visit of its macro forecasting support mission as the country gets struck in the political standoff.

The visit of Analytical and Advisory Activities (AAA) mission was aimed at advising the government on revision of current fiscal year budget and also preparation of next fiscal budget.

The mission was scheduled to arrive today and stay till March 5.

World Bank’s Dhaka office has already conveyed the development to the Economic Relations Division.

Quoting World Bank sources, an ERD official said once stability was restored in Bangladesh politics, the WB mission would visit Bangladesh soon. 

But State Minister for Finance MA Mannan denied the political unrest as reason behind the suspension of the visit though he refrained from citing “the real cause” behind.

“Political unrest is not the cause. There is a different reason for suspension of the WB team’s visit.”

The main objective of the mission was to assist the government in developing a macro forecasting model to provide inputs in the preparation of medium-term macroeconomic framework underpinning the annual budget.

Sources in the Finance Division said the size of the revised budget for the current fiscal year might finally stand at Tk2,40,000 crore, down by nearly Tk10,000 crore from the original one.

 Finance Minister AMA Muhith initially estimated the next fiscal year budget outlay at Tk2,92,000 crore, over 16% bigger than the current outlay. The size of the budget has been increasing every year. 

In fiscal 2005-06, the size of the budget was Tk61,000 crore which rose to Tk2,51,000 crore. 

The WB mission was also to advise on ensuring more efficient use of government exchequers.

The proposed WB team would comprise the Bank’s lead economist Zahid Hussain, economists Faya Hayati, Cristina Savesco, training expert Afroza Alam and Kamrun Nahar Chowdhury. The team was supposed to meet top officials of finance ministry and Bangladesh Bank.

In 2006, the then World Bank country director Christina Wallich left Dhaka fearing of bomb attack by Islamic outfit Jamatul Mujahideen Bangladesh during BNP-led four-party alliance regime.

Prime Minister Sheikh Hasina said blockade had caused a loss of over Tk1,20,000 crore in the first 52 days.