The World Bank has approved an emergency loan of $1.1 billion for two projects in Bangladesh to help the country address global fertilizer and energy market volatility, maintain food security, and ensure rapid response measures. The approval was announced on Friday through a statement from the World Bank’s Dhaka office. Jean Pesme, the Bank’s Country Director for Bangladesh and Bhutan, said the assistance aims to mitigate the economic impact of rising food, fertilizer, and fuel prices caused by conflicts in the Middle East, which have severely affected small farmers and vulnerable communities.

The funding will be used under the “Emergency Support for Food Security Project” to import 600,000 metric tons of essential fertilizer, half of which will be urea, for the 2026 Aman and 2026–27 Boro rice seasons. This is expected to sustain rice production across 1.4 million hectares of farmland. Another portion, under the “Contingent Emergency Response Project,” will provide cash support to affected families and small businesses, and maintain essential services such as food, medicine, electricity, and water. The funds are scheduled for disbursement by June 30.

World Bank officials said the emergency fund was created by reallocating unused resources from existing projects to ensure quick delivery and avoid bureaucratic delays.