Bangladesh Secures $1.1 Billion World Bank Lifeline to Protect Food Security and Livelihoods

27/06/2026

Bangladesh Secures $1.1 Billion World Bank Lifeline to Protect Food Security and Livelihoods

DHAKA, June 28: The World Bank has approved $1.1 billion in financing for Bangladesh to strengthen food security, support vulnerable communities, and cushion the economy from rising global fertilizer and fuel prices driven by regional conflicts.

According to a World Bank statement issued Saturday, the funding includes a $300 million Emergency Support for Food Security Project to help Bangladesh import fertilizers for the country's crucial Aman and Boro rice-growing seasons, which together account for nearly 90% of national rice production.

An additional $713 million Contingent Emergency Response Project will provide rapid financial support for emergency spending, including cash transfers, livelihood assistance, and fuel and energy supplies to maintain essential services such as food distribution, healthcare, water, and electricity.

The funding comes shortly after Bangladesh's government unveiled its record 9.02 trillion taka ($74 billion) national budget for the 2026-27 fiscal year, which includes an estimated $18.5 billion budget deficit.

World Bank Division Director for Bangladesh and Bhutan Jean Pesme said rising food, fertilizer and fuel prices linked to the Middle East conflict, combined with tighter fiscal conditions, have placed severe pressure on Bangladesh's economy, particularly affecting smallholder farmers and vulnerable households.