The World Bank has approved 1.1 billion dollars in emergency financing for Bangladesh, underscoring the growing economic pressures facing the country amid rising fuel and fertiliser costs, shrinking fiscal space and mounting concerns over food security.
The package includes 300 million dollars to finance fertiliser imports and support rice production, while another 713 million dollars have been earmarked for emergency expenditures, including cash assistance, livelihood support and essential energy supplies.
The approval comes at a time when Bangladesh is struggling with persistent inflation, declining foreign aid inflows, rising debt repayments and weakening industrial activity. Critics say the need for such large-scale emergency assistance highlights the increasing vulnerability of the country’s economy to both external shocks and domestic policy challenges.
The World Bank said rising food, fuel and fertiliser prices, compounded by limited fiscal space, have severely affected small farmers and vulnerable households. Bangladesh imports more than 85 per cent of its fertiliser requirements, making the country highly exposed to global price volatility.
