The World Bank has approved nearly $1.1 billion in emergency financing for Bangladesh to help safeguard food security, address the impact of global fertilizer and fuel market volatility, and protect livelihoods amid rising economic pressures.

According to a World Bank statement issued by its Dhaka office, the funding was approved on Friday under two separate projects in response to disruptions in global food, fertilizer, and energy markets triggered by the ongoing conflict in the Middle East.

The multilateral lender said the crisis has disproportionately affected Bangladesh’s smallholder farmers, poor households, and other vulnerable groups, prompting the need for urgent financial assistance.

Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, said the financing would help ensure the supply of fertilizer for rice production, protect jobs and livelihoods, and maintain essential public services.

Under the Emergency Support for Food Security Project, Bangladesh will import fertilizer for the 2026 Aman season (July-October) and the 2026-27 Boro season (October-April).

More than 85% of Bangladesh’s fertilizer demand is met through imports. The project will finance the import of 600,000 metric tonnes of key fertilizers, including 300,000 metric tonnes of urea, enabling small farmers to continue rice cultivation on around 1.4 million hectares of land.

World Bank Chief Economist Souleymane Coulibaly said nearly 90% of the country’s rice production comes from the Aman and Boro seasons, warning that fertilizer shortages could have severe consequences for food security, employment, and poverty, as nearly half of Bangladesh’s population depends on agriculture.

Meanwhile, under the Contingent Emergency Response Project, a significant portion of the funding will be used to provide cash assistance to affected families and support the recovery of small and medium-sized enterprises. The remaining funds will help ensure the uninterrupted supply of essential services, including food, medicine, medical equipment, electricity, water, and fuel. The World Bank plans to disburse the funds by June 30.

Leslie Jean Yu Cordero, the World Bank’s Disaster Risk Management Specialist, said the emergency fund was created by reallocating unutilized resources from ongoing projects, allowing the bank to deliver rapid assistance while minimizing bureaucratic delays and cushioning people, businesses, and jobs from the economic shock.