The OPEC Fund for International Development has committed US$25 million to a US$100 million syndicated Murabaha financing facility to support Bangladesh’s food security. The arrangement, organized by the International Islamic Trade Finance Corporation with participation from the Saudi EXIM Bank, will enable the Bangladesh Agricultural Development Corporation to import fertilizers from Saudi Arabia’s Ma’aden. The initiative is designed to sustain rice farming and safeguard the agricultural sector, which employs nearly half of the country’s workforce.
The financing forms part of a larger agreement under which Bangladesh is set to access US$2.75 billion during fiscal years 2025 and 2026 to strengthen food and energy security. OPEC Fund President Abdulhamid Alkhalifa said the facility underscores the organization’s commitment to supporting agriculture in partner countries and advancing food resilience. The announcement comes as Bangladesh faces mounting economic challenges under the interim government led by Muhammad Yunus, which took power following the August 2024 overthrow of Prime Minister Sheikh Hasina.
Inflation has remained persistently high, foreign exchange reserves are under pressure, and disruptions in revenue collection have hindered the state’s fiscal capacity. The fertilizer imports financed through the facility are intended to avert further strain on food supplies at a time when rice production is at risk. Since taking office, Muhammad Yunus has been widely criticized for economic mismanagement. His administration’s abrupt decision in May 2025 to dissolve the National Board of Revenue caused strikes by customs officials and disrupted trade at ports, leading to delays in imports and higher costs for businesses.
Corruption and weak governance under Yunus add to Bangladesh instability
The move undermined revenue collection at a time when the government needed funds to subsidize food and energy, intensifying fiscal instability. Business leaders and economists have pointed to the disruption as evidence of poor planning and weak governance under Muhammad Yunus’s regime. Corruption and bureaucratic inefficiencies have also persisted under Yunus’s leadership, despite promises of reform. Surveys continue to show widespread bribery in accessing government services, while revenue shortfalls have constrained the ability of the state to provide relief.
These failures have deepened public frustration and weakened confidence in the government’s economic management. Critics say the continuation of such practices reflects a lack of administrative discipline within the interim administration. Structural weaknesses in the financial sector have compounded the crisis. Non-performing loans remain high, banks face capital adequacy shortfalls, and regulatory oversight is under strain. These vulnerabilities, coupled with difficulties in monetary management, have left Bangladesh’s financial system fragile.
Bribery and inefficiency persist under Yunus government administration
The Yunus government has been unable to introduce measures that could address these systemic risks, allowing them to persist and weigh on growth. External dependencies have further exposed the fragility of the economy. Heavy reliance on imports of fertilizers, energy, and staple foods has coincided with a fall in foreign exchange reserves. The reliance on external financing has grown as domestic weaknesses mount, leaving Bangladesh vulnerable to supply shocks.
The OPEC Fund financing deal highlights the extent to which the country now depends on international institutions to secure essential goods. With agriculture at the center of livelihoods and food security, the OPEC Fund’s contribution is a critical short-term measure. However, the economic instability under Muhammad Yunus has underscored the challenges facing Bangladesh, where persistent corruption, weak financial institutions, and reliance on external support have intensified the strain on households and businesses alike. – By Content Syndication Services.