The World Bank has approved an emergency assistance package worth US$1.1 billion for Bangladesh to help the country address growing economic pressures linked to instability in global fertiliser and energy markets. The funding, announced on 26 June, is intended to strengthen food security, maintain essential public services, and improve the country’s capacity to respond rapidly during emergencies.
According to the World Bank, the financial support comes at a time when the conflict in the Middle East has disrupted international supply chains, pushing up the prices of fuel, fertiliser and food commodities. These developments have placed additional pressure on Bangladesh’s public finances while increasing production costs for farmers and raising concerns over the affordability of essential goods for vulnerable households.
Jean Pesme, the World Bank’s Country Director for Bangladesh and Bhutan, said the surge in global food, fertiliser and energy prices had placed a significant burden on the government’s fiscal position. He noted that smallholder farmers, as well as poor and vulnerable communities, were bearing the greatest impact of these rising costs. The emergency financing, he said, is designed to provide immediate support as Bangladesh navigates these external economic shocks.
Of the total package, US$300 million has been allocated to the Emergency Support for Food Security Project. The funding will be used to finance fertiliser imports required for the Aman rice season between July and October this year, as well as the Boro cultivation season from October 2026 to April 2027.
Bangladesh relies heavily on imported fertiliser, with more than 85 per cent of its national demand sourced from overseas. Under the project, approximately 600,000 metric tonnes of fertiliser will be imported, half of which will consist of urea. The additional supply is expected to support rice cultivation across nearly 1.4 million hectares of farmland, benefiting thousands of small-scale farmers and helping to safeguard domestic food production.
Solemane Coulibaly, the World Bank’s Lead Economist and Task Team Leader for the project, said that nearly 90 per cent of Bangladesh’s total rice production comes from the Aman and Boro seasons. He added that almost half of the country’s population is directly or indirectly connected to agriculture for their livelihoods. Any prolonged disruption in fertiliser availability, he warned, could threaten food security, reduce agricultural output, increase poverty and negatively affect employment across rural communities.
A further US$713 million has been allocated under the Contingent Emergency Response programme. This component of the financing is intended to provide cash assistance to families affected by emergencies and support the recovery of micro, small and medium-sized enterprises. The initiative also aims to restore livelihoods, stabilise household incomes and preserve employment during periods of economic disruption.
The World Bank said part of the funding would also be available to maintain critical energy supplies if required. This would help ensure the continued operation of essential services, including electricity, clean water, healthcare, food distribution and the supply of medicines and medical equipment during any emergency.
The financing is expected to be disbursed by 30 June, enabling the government to mobilise resources quickly should the need arise.
Leslie Jean Yu Cordero, the World Bank’s Disaster Risk Management Specialist and Task Team Leader for the emergency response programme, said the initiative makes use of unallocated resources from existing projects by reallocating them to urgent priorities. This approach, he explained, allows assistance to reach affected communities more rapidly while also supporting businesses to maintain operations and protect jobs during periods of crisis.
The latest financing package reflects the World Bank’s continued support for Bangladesh as it faces the economic consequences of global geopolitical tensions. By reinforcing fertiliser supplies, protecting agricultural production, supporting vulnerable households and ensuring the continuity of essential services, the programme is intended to strengthen the country’s resilience against external shocks while helping to safeguard livelihoods and food security.