The World Bank has approved $1.1 billion in emergency financing for Bangladesh to strengthen food security, protect livelihoods and help the country cope with the economic impact of rising global food, fertiliser and fuel prices, reports Daily Sun.
Announced on Thursday, the funding will support two projects aimed at ensuring an uninterrupted fertiliser supply for rice production, protecting vulnerable households and businesses, and strengthening Bangladesh's capacity to respond to future economic shocks.
World Bank Division Director for Bangladesh and Bhutan Jean Pesme said Bangladesh's economy has come under increasing pressure from soaring global prices linked to the conflict in the Middle East, alongside tightening fiscal space.
"Rising food, fertiliser and fuel prices stemming from the Middle East conflict, along with tighter fiscal space, have deeply impacted Bangladesh's economy, hitting smallholder farmers as well as poor and vulnerable people the hardest," he said.
"The World Bank has stepped up with immediate support to help Bangladesh mitigate this impact, ensure fertiliser supply for rice production, protect households, jobs and livelihoods, and continue essential services."
Of the total package, $300 million has been allocated to the Emergency Support for Food Security Project. The project will provide time-bound financing to help Bangladesh import fertilisers for the upcoming Aman and Boro rice seasons.
The financing will support fertiliser imports from July to October 2026 for the Aman season and from October 2026 to April 2027 for the Boro season.
Bangladesh currently imports more than 85 percent of its fertiliser requirements. Under the project, the World Bank will finance the import of 600,000 metric tonnes of essential fertilisers, including 300,000 metric tonnes of urea, covering around 1.4 million hectares of rice fields cultivated by smallholder farmers.
World Bank Lead Economist and Task Team Leader Souleymane Coulibaly said uninterrupted fertiliser supplies are crucial for the country's food security.
"Bangladesh's food security depends on the Aman and Boro rice seasons, which together account for about 90 percent of the country's total rice production. Nearly half of the population is employed in agriculture. Any disruption in fertiliser supply would threaten food security, deepen poverty and put jobs at risk," he said.
The World Bank has also approved $713 million under the Contingent Emergency Response Project to finance rapid emergency spending during crises.
The funding will support cash transfers, livelihood assistance for affected households, and financial support for micro, small and medium-sized enterprises (MSMEs) to help protect jobs and stabilise incomes.
It will also finance fuel and energy imports to ensure the continued delivery of essential services, including food distribution, healthcare, electricity and water supply.
The emergency financing is scheduled to be fully disbursed by June 30, 2026.
World Bank Lead Disaster Risk Management Specialist and Task Team Leader Lesley Jeanne Yu Cordero said the project would enable Bangladesh to respond more quickly to future economic and humanitarian crises.
"This project will provide Bangladesh with immediate access to funds through the World Bank's crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, directing resources where they are most needed and protecting people, businesses and jobs from the impact of shocks," she said.
The World Bank said the two projects are expected to strengthen food production, support vulnerable communities and businesses, and improve Bangladesh's resilience against future external shocks.
Bd-Pratidin English/ AM
