600,000 jobs at risk as poverty situation may worsen in Bangladesh: WB

The number of people living in poverty has already increased amid the Covid-19 pandemic, the Russia-Ukraine war, high inflation and uncertainty following the 2024 mass uprising.

The findings were included in an assessment report finalised by the World Bank on 15 June after the Bangladesh government sought budget support to meet the rising import costs of fuel, fertiliser and other essential commodities amid the Middle East crisis.

The World Bank estimates that around 1.4 million more people fell into poverty in Bangladesh in 2025.

The outlook for 2026 had initially been more positive. Without the Middle East conflict, around 1.7 million people could have moved out of poverty this year. However, the number could now fall to only about 500,000, according to the assessment.

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Rising prices are also expected to play a significant role in worsening poverty. The World Bank estimates that price increases could account for around 10% of the rise in poverty this year.

Higher energy prices could push up transport costs, electricity generation costs and industrial production expenses, eventually increasing the prices of food and other essential goods.

According to sources, the government sought budget support from the World Bank after the crisis erupted in the Middle East, and the lender agreed to provide the assistance. However, the World Bank stipulated that unused funds allocated to various projects would be consolidated and used as budget support.

On 26 June, the World Bank approved $713 million in budget support for Bangladesh.