World Bank approves $1.1b for Bangladesh

WASHINGTON:

The World Bank approved $1.1 billion in emergency financing for Bangladesh to help secure food supplies, support vulnerable households and businesses due to the rising prices of fertiliser, fuel and food from the Middle East conflict.

Bangladesh is also seeking additional external financing from development partners, including the International Monetary Fund (IMF), to shore up foreign exchange reserves and ease pressure on public finances following a surge in energy import costs and broader economic challenges.

The World Bank package comprises two projects aimed at helping the country manage external shocks and maintain economic stability.

Of the total, $300 million will be provided under the Emergency Support for Food Security Project to finance imports of 600,000 metric tons of fertiliser for the upcoming rice seasons.

Bangladesh imports more than 85 per cent of its fertiliser requirements, making it vulnerable to disruptions in global supply chains.