DHAKA: The World Bank approved US$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, 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, US$300 million will be provided under the Emergency Support for Food Security Project to finance imports of 600,000 metric tonnes 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.
"Rising food, fertiliser 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," Jean Pesme, the World Bank's division director for Bangladesh and Bhutan, said in a statement.
The project will support rice cultivation across 1.4 million hectares of farmland.
The remaining US$713 million, approved under the Contingent Emergency Response Project, will finance emergency expenditures, including cash transfers and livelihood support for affected households and small businesses.
It will also help fund fuel and energy imports needed to sustain essential services, including healthcare, food distribution, electricity and water supplies.
The World Bank said the financing would help Bangladesh respond rapidly to economic shocks while protecting jobs, livelihoods and critical services. - Reuters
