World Bank approves $1.1 billion emergency aid for Bangladesh

The World Bank has approved an emergency financing package worth $1.1 billion for Bangladesh to help the country address mounting economic pressures caused by soaring global prices of food

The World Bank has approved an emergency financing package worth $1.1 billion for Bangladesh to help the country address mounting economic pressures caused by soaring global prices of food, fuel and fertiliser amid ongoing instability in the Middle East.

The funding is intended to strengthen Bangladesh’s food security, support vulnerable families and small businesses, and ensure the uninterrupted supply of essential services as the country grapples with the economic fallout from higher import costs and external shocks.

Alongside the World Bank assistance, Bangladesh is pursuing additional financial support from international development partners, including the International Monetary Fund (IMF), to reinforce its foreign exchange reserves and reduce fiscal pressures stemming from rising energy import bills and broader economic challenges.

According to the World Bank, the emergency financing package consists of two separate projects designed to help Bangladesh respond swiftly to external economic disruptions while preserving macroeconomic stability.

Under the first initiative, the Emergency Support for Food Security Project, the World Bank will provide $300 million to finance the import of approximately 600,000 metric tons of fertiliser for upcoming rice cultivation seasons. Bangladesh relies on imports for more than 85 percent of its fertiliser requirements, leaving the agricultural sector highly exposed to fluctuations in global markets and supply chain disruptions.

The project is expected to support rice production across nearly 1.4 million hectares (around 3.46 million acres) of farmland, helping safeguard agricultural output and strengthen domestic food supplies.

Jean Pesme, the World Bank’s Division Director for Bangladesh and Bhutan, said the sharp increase in food, fertiliser and fuel prices linked to the Middle East conflict, combined with limited fiscal space, has placed significant strain on Bangladesh’s economy. He noted that small-scale farmers, low-income households and other vulnerable groups have been among the hardest hit by the crisis.

The remaining $713 million will be disbursed through the Contingent Emergency Response Project, which will finance emergency government spending, including direct cash assistance, livelihood support programmes for affected households and financial relief for small businesses.

The funding will also help Bangladesh pay for critical fuel and energy imports required to maintain essential public services such as healthcare, electricity generation, water supply and food distribution networks.

The World Bank said the financing package is designed to strengthen Bangladesh’s ability to respond quickly to economic shocks while protecting jobs, preserving livelihoods and ensuring the continued delivery of essential services during a period of heightened global uncertainty.