The World Bank has approved $1.1 billion in emergency funding for Bangladesh, one of the world’s poorest nations. This initiative aims to ensure food security and support vulnerable households and businesses, as rising prices for fertilizers, fuel, and food have been exacerbated by the ongoing conflict in the Middle East, according to Reuters.
Bangladesh has also requested additional external funding from development partners, including the International Monetary Fund (IMF), to bolster its foreign reserves and alleviate pressure on public finances due to increasing energy import costs and broader economic challenges.
The World Bank’s package includes two projects designed to help the country manage external shocks and maintain economic stability.
Out of the total amount, $300 million will be allocated under the Emergency Food Security Support Project to finance the import of 600,000 tons of fertilizers for upcoming rice cultivation seasons.
Bangladesh imports over 85% of its fertilizer needs, making it vulnerable to disruptions in global supply chains.
Jean Pesme, director of the World Bank’s division for Bangladesh and Bhutan, stated that “the rising prices of food, fertilizers, and fuel, driven by the conflict in the Middle East, combined with an increasingly constrained fiscal space, have profoundly impacted Bangladesh’s economy, particularly for small farmers and vulnerable households.”
The project will support rice cultivation on 1.4 million hectares of agricultural land.
The remaining $713 million, approved under the Contingent Emergency Response Project, will finance urgent expenditures, including cash transfers and livelihood support for affected households and small businesses.
Additionally, it will help fund necessary fuel and energy imports to sustain essential services, including healthcare, food distribution, electricity supply, and water provision.
The World Bank stated that this funding will help Bangladesh respond swiftly to economic shocks while protecting jobs, livelihoods, and critical services.
Despite its smaller land area compared to Romania, Bangladesh has a population more than nine times larger. With 176 million residents, it ranks as the eighth most populous country in the world and is among the most densely populated nations globally.
