The World Bank has authorized an emergency financing package totaling $1.1 billion to assist Bangladesh in managing escalating costs of food, fertiliser, and fuel caused by the ongoing conflict in the Middle East. This financial support aims to protect vulnerable households, sustain businesses, and secure food availability as the country faces increasing import expenses and wider economic difficulties.
In a significant development, Bangladesh is also seeking further financial aid from global development partners, including the International Monetary Fund (IMF), to strengthen its foreign exchange reserves and alleviate fiscal pressures on the government.
Of the approved funds, $300 million is designated for the Emergency Support for Food Security Project. This initiative will finance the importation of approximately 600,000 metric tonnes of fertiliser required for the upcoming rice cultivation seasons. Given that Bangladesh depends on imports for over 85 percent of its fertiliser, its agricultural sector remains vulnerable to global supply chain disruptions and price fluctuations.
Jean Pesme, the World Bank’s division director for Bangladesh and Bhutan, highlighted that the surge in prices for food, fertiliser, and fuel due to the Middle East conflict has severely strained Bangladesh’s economy. Smallholder farmers and low-income families are among those most affected. The project is anticipated to support rice farming across nearly 1.4 million hectares of farmland.
The remaining $713 million will be allocated through the Contingent Emergency Response Project to enable Bangladesh to address economic shocks effectively. This portion of the funding will cover emergency expenditures such as cash transfers and livelihood assistance for vulnerable households and small enterprises struggling with rising living costs.
Meanwhile, the funds will also support the import of fuel and energy necessary to sustain vital public services, including electricity production, healthcare, water supply, and food distribution networks. The World Bank emphasizes that this financing package is designed to enhance Bangladesh’s capacity to respond swiftly to external economic challenges while protecting jobs, livelihoods, and essential services.
