The World Bank has approved $1.1 billion in emergency support for Bangladesh to help safeguard food security, protect livelihoods and respond to the economic shocks caused by rising global food, fertiliser and fuel prices.
The funding, announced on Thursday, will support two projects aimed at ensuring fertiliser supplies for rice production, protecting vulnerable households and businesses, and strengthening the country's capacity to respond to future crises.
World Bank steps up emergency support
Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, said Bangladesh's economy has come under increasing pressure from soaring prices triggered by the conflict in the Middle East, compounded by limited 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, which will provide time-bound financing to help Bangladesh import fertilisers for the upcoming Aman and Boro rice-growing seasons.
The project will support fertiliser imports between July and October 2026 for the Aman crop and October 2026 to April 2027 for the Boro season.
Bangladesh currently imports more than 85 per cent of its fertiliser requirements.
The project will finance the import of 600,000 metric tonnes of essential fertilisers, including 300,000 metric tonnes of urea, covering approximately 1.4 million hectares of rice fields cultivated by smallholder farmers.
Souleymane Coulibaly, World Bank Lead Economist and Task Team Leader for the project, said uninterrupted fertiliser supplies are critical for Bangladesh's food security.
"Bangladesh's food security depends on the Aman and Boro rice seasons, which together account for about 90 per cent 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 preserve jobs and stabilise incomes.
The project will also finance imports of fuel and energy supplies to maintain essential services, including food distribution, healthcare, electricity and water supply.
The emergency financing is scheduled to be fully disbursed by 30 June 2026.
Lesley Jeanne Yu Cordero, World Bank Lead Disaster Risk Management Specialist and Task Team Leader for the project, said the initiative would enable Bangladesh to respond more quickly to future economic and humanitarian shocks. "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.
Boost for food security and economic stability
The emergency financing comes at a time when Bangladesh is facing mounting economic challenges from global supply disruptions, rising import costs and inflationary pressures.
The World Bank said the two projects are expected to strengthen food production, protect vulnerable communities, support businesses and improve the country's resilience against future external shocks.
