World Bank approves Tk 13,200cr emergency support for Bangladesh

The World Bank has approved nearly US$1.1 billion (around Tk 13,200 crore) in emergency financing for Bangladesh to help cushion the impact of global volatility in food, fertiliser and energy markets, strengthen food security, and protect the livelihoods of vulnerable communities.

The funding, approved on Friday (June 26) under two separate projects, aims to support the country's agriculture sector, maintain essential public services and provide financial assistance to households and businesses affected by external economic shocks.

According to a statement from the World Bank's Dhaka office, continued instability in global food, fertiliser and fuel markets—driven largely by the ongoing conflict in the Middle East—has disrupted supply chains and increased prices, placing additional pressure on Bangladesh's economy, particularly on smallholder farmers and low-income households.

World Bank Division Director for Bangladesh and Bhutan Jean Pesme said the financing would help ensure the uninterrupted supply of fertiliser for rice cultivation, safeguard livelihoods and employment, and sustain critical public services during the current global crisis.

Of the total package, US$300 million has been allocated to the Emergency Support for Food Security Project, which will finance the import of fertilisers for the upcoming Aman (July–October 2026) and Boro (October 2026–April 2027) seasons.

Bangladesh currently imports more than 85 percent of its fertiliser demand. Under the project, around 600,000 metric tonnes of fertiliser—half of it urea—will be imported to support rice cultivation across nearly 1.4 million hectares of farmland, benefiting millions of small-scale farmers.

World Bank Chief Economist Souleymane Coulibaly noted that nearly 90 percent of Bangladesh's rice production comes from the Aman and Boro seasons, while almost half of the country's population depends directly or indirectly on agriculture. Any disruption in fertiliser supply, he said, could significantly affect food production, employment and poverty levels.

The remaining financing will be channelled through the Contingent Emergency Response Project (CERP) to provide rapid support for vulnerable households and small and medium-sized enterprises (SMEs).

The funds will also be used to maintain essential services, including food supply, healthcare, medicines, electricity and safe drinking water, while supporting fuel and energy needs to ensure uninterrupted public service delivery.

The World Bank said it expects the disbursement process to be completed by June 30.

Disaster Risk Management Specialist Lesley Jeanne Yu Cordero said the emergency financing was created by reallocating unused funds from ongoing World Bank-supported projects, allowing the money to be released quickly without lengthy administrative procedures.

The World Bank believes the package will help Bangladesh sustain agricultural production, protect jobs, strengthen food security and mitigate the immediate impact of global economic uncertainty on the country's economy.