Dhaka, June 27: The World Bank has approved a $1.1 billion financing package aimed at helping Bangladesh address rising pressures on food security, fertiliser supply, and energy availability amid ongoing global economic uncertainty and escalating tensions in the Middle East.
The support will be channelled through two separate projects designed to stabilise essential supplies, protect vulnerable communities, and enhance the country’s ability to respond quickly to economic disruptions.
According to the World Bank, recent increases in global food, fertiliser, and fuel prices—driven largely by the conflict in the Middle East and broader geopolitical instability—have placed significant strain on Bangladesh’s economy. The impacts have been particularly severe for small-scale farmers, low-income households, and other vulnerable groups.
Jean Pesme, the World Bank’s Division Director for Bangladesh and Bhutan, said the financing package is intended to ensure uninterrupted access to agricultural inputs, safeguard livelihoods, and maintain critical public services during periods of economic stress.
A key component of the package is the Emergency Support for Food Security Project, which will receive $300 million. The funding will be used to import fertilisers required for the upcoming Aman and Boro rice-growing seasons. Bangladesh currently relies on imports for more than 85 percent of its fertiliser demand, making stable supply chains essential for agricultural production.
The project will support the import of approximately 600,000 tonnes of fertiliser, including a substantial quantity of urea, helping farmers cultivate around 1.4 million hectares of rice-producing land.
World Bank Lead Economist Souleymane Coulibaly noted that the Aman and Boro seasons account for roughly 90 percent of Bangladesh’s total rice output. He warned that any interruption in fertiliser availability could affect national food production, rural employment, and household incomes, given the agriculture sector’s significant role in the economy.
The remaining $713 million will be allocated through the Contingent Emergency Response Project, which is designed to provide rapid financial assistance during crises.
The initiative will support emergency cash transfer programmes, livelihood assistance for affected families, and support for micro, small, and medium-sized enterprises (MSMEs). The funding is also expected to help secure fuel and energy supplies necessary to maintain essential services, including food distribution, healthcare operations, electricity generation, and water supply systems.
The World Bank said the financing will be mobilised by redirecting unused funds from existing development projects under its crisis preparedness and response framework. The approach is intended to provide Bangladesh with immediate access to resources without requiring new financing arrangements.
Lesley Jeanne Yu Cordero, World Bank Lead Disaster Risk Management Specialist, said the mechanism allows resources to be quickly redirected to priority areas, helping protect people, businesses, and jobs from the economic consequences of external shocks.
The financing package comes as Bangladesh seeks to strengthen its resilience against global market volatility while ensuring food production and essential services remain uninterrupted.
