The World Bank has approved over $1 billion in financing for Bangladesh to help the country cope with global disruptions in fertilizer and energy markets—and to bolster food security and support vulnerable households. According to Bloomberg, the funding is split into two packages: one focused on meeting agricultural needs, and the other on shielding the economy from mounting external pressures.
Fertilizer Imports and Household Support
Of the total amount, $300 million will be used to import approximately 600,000 metric tons of fertilizer for rice cultivation cycles running from July 2026 to April 2027. These planting periods account for nearly 90% of Bangladesh’s annual rice production—making reliable fertilizer supply critical.
Bangladesh imports more than 85% of its fertilizer needs, leaving it highly exposed to fluctuations in global prices and supply chain disruptions. The second package—worth $713 million—is designated as emergency financing and is expected to be disbursed by 30 June. Its funds will support low-income households, very small and small businesses, and address urgent fuel and energy needs.
Economic Pressures Mount
“Rising food, fertilizer, and fuel prices—linked to the Middle East conflict—combined with limited fiscal space, have significantly strained Bangladesh’s economy,” said Jean Pesme, World Bank Country Director for Bangladesh and Bhutan, as reported by a U.S. news agency.
Financial pressures have intensified in recent months: higher import costs are depleting foreign exchange reserves, while export earnings from abroad have slowed. With this new financing, the World Bank aims to mitigate the impact of the global crisis on agricultural output, food availability, and the incomes of the most vulnerable populations.