World Bank approves $1.1 billion emergency financing for Bangladesh

DHAKA: The World Bank has approved $1.1 billion in emergency financing for Bangladesh to help the country protect food supplies and support vulnerable households and businesses facing higher costs linked to the Middle East conflict.

The funding is intended to cushion the impact of rising fertiliser, fuel and food prices. Bangladesh is also pursuing additional external financing from development partners, including the International Monetary Fund (IMF), to strengthen its foreign exchange reserves and reduce pressure on public finances after a jump in energy import costs and broader economic strains.

The World Bank package consists of two projects designed to help Bangladesh respond to external shocks and preserve economic stability. Of the total amount, $300 million has been allocated under the Emergency Support for Food Security Project to pay for imports of 600,000 metric tons of fertiliser for the coming rice seasons.

Bangladesh relies on imports for more than 85 per cent of its fertiliser needs, leaving it exposed to disruptions in global supply chains. The emergency financing is aimed at reducing that vulnerability while supporting the country's food production cycle.