World Bank Approves $1.1 Billion Crisis Financing for Bangladesh

By the Editorial Team · Sunday, June 28, 2026

The World Bank has approved $1.1 billion in emergency funding to help Bangladesh mitigate the economic fallout from the Middle East conflict, focusing on food security, vulnerable groups, and rising costs for fertilizer, fuel, and food. This support includes financing for critical fertilizer imports that will aid rice cultivation on 1.4 million hectares, while Bangladesh seeks additional funding to stabilize its foreign exchange reserves and sustain economic stability.

The World Bank has approved $1.1 billion in emergency financing aimed at helping Bangladesh address the economic challenges arising from the ongoing conflict in the Middle East. The funds are intended to safeguard food supplies, support vulnerable households and businesses, and help the country manage rising costs for fertilizer, fuel, and food.

The financing package consists of two projects designed to help Bangladesh cope with external shocks and maintain economic stability amid increased pressure on public finances. Of the total amount, $300 million will be allocated to the Emergency Support for Food Security Project, which will finance the import of 600,000 metric tons of fertilizer critical for the upcoming rice planting seasons. Bangladesh relies on imports for more than 85 percent of its fertilizer needs, making it particularly susceptible to disruptions in global supply chains.

Jean Pesme, the World Bank’s division director for Bangladesh and Bhutan, emphasized the economic impact of the Middle East conflict on the country’s most vulnerable populations. “Rising food, fertilizer and fuel prices stemming from the Middle East conflict, coupled with tighter fiscal space, have deeply affected Bangladesh’s economy, particularly smallholder farmers and poor and vulnerable households,” he said. The fertilizer imports supported by the project are expected to assist rice cultivation across approximately 1.4 million hectares (3.46 million acres) of farmland.

In addition to the World Bank financing, Bangladesh is actively seeking further external funding from development partners, including the International Monetary Fund (IMF), to strengthen its foreign exchange reserves. This broader effort aims to alleviate financial pressures caused by a surge in energy import costs and other economic challenges facing the country.

Bangladesh’s government and international financial institutions continue to monitor the evolving situation closely, working together to provide necessary support to ensure economic and social stability amid ongoing global uncertainties.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.