The World Bank has approved US$1.1bil (RM4.5bil) 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.
The country 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$300mil (RM1.23bil) 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% 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$713mil (RM2.92bil), approved under the Contingent Emergency Response Project, will finance emergency expenditures. — Reuters
