World Bank approves $1.1b emergency fund for Bangladesh

The World Bank has approved US$1.1 billion in emergency financing for Bangladesh to help safeguard food security, protect livelihoods and maintain essential public services as the country grapples with soaring global fertiliser and fuel prices linked to the ongoing conflict in the Middle East.
The financing package, approved by the World Bank’s Board of Executive Directors on Friday, consists of two projects designed to ensure uninterrupted fertiliser supplies for rice production and provide rapid financial support during emergencies.
The largest component, the $713 million Contingent Emergency Response Project, will finance emergency expenditures, including cash transfers and livelihood assistance for affected households and micro, small and medium-sized enterprises (MSMEs). It will also help ensure the continued supply of fuel and energy needed to sustain critical services, including food distribution, healthcare, electricity and water.
A further $300 million Emergency Support for Food Security Project will provide time-bound financing to import six lakh tonnes of fertiliser for the upcoming Aman and Boro rice seasons. Bangladesh imports more than 85% of its fertiliser requirements, making it highly vulnerable to disruptions in global supply chains and price volatility.
According to the World Bank, the fertiliser imports financed under the project will support rice cultivation across approximately 14 lakh hectares of farmland, benefiting millions of smallholder farmers.
“Rising food, fertiliser and fuel prices stemming from the Middle East conflict, together with tighter fiscal space, have placed significant pressure on Bangladesh’s economy, affecting smallholder farmers as well as poor and vulnerable households the most,” said Jean Pesme, World Bank division director for Bangladesh and Bhutan.
“The World Bank has stepped up with immediate support to help Bangladesh mitigate these impacts, ensure fertiliser supply for rice production, protect households, jobs and livelihoods, and maintain essential services,” he added.
The World Bank noted that the Aman and Boro seasons account for around 90% of Bangladesh’s total rice production, while nearly half of the country’s workforce depends on agriculture for employment.
“Any disruption in fertiliser supply would not only threaten food security but also deepen poverty and put jobs at risk,” said Souleymane Coulibaly, World Bank Lead Economist and Task Team Leader for the food security project.
Meanwhile, the emergency response project is designed to provide Bangladesh with rapid access to financing during crises by repurposing unused funds from existing World Bank-financed projects.
“This project gives Bangladesh immediate access to resources through the World Bank’s crisis preparedness and response toolkit, directing financing where it is needed most while protecting people, businesses and jobs from the impact of shocks,” said Lesley Jeanne Yu Cordero, World Bank lead disaster risk management specialist and task team leader for the project.
The World Bank said the emergency financing package forms part of its continued support to help Bangladesh strengthen economic resilience, maintain agricultural production and respond quickly to external shocks affecting vulnerable communities.