Asian Development Bank Urges Governments to Provide Targeted Relief to Vulnerable Populations Amid West Asia Conflict

The Asian Development Bank (ADB) has reported that the conflict in West Asia disproportionately affects the poor and vulnerable populations. Due to this conflict, the economic growth rate of the Asia-Pacific region has been reduced from 5.1% to 4.7%. ADB has advised governments to provide targeted cash assistance to the poor instead of blanket grants. (April 24, Samarkand, Uzbekistan).

At the 59th annual meeting held in Samarkand, Uzbekistan, ADB Chief Economist Dr. Albert F. Park highlighted that the ongoing crisis in West Asia represents more than a temporary shock; it marks the beginning of a prolonged conflict cycle, a shift toward sustainable change. He noted that this situation has not only pushed up fuel prices but also increased the costs of chemical fertilizers and other essential goods, impacting poor and marginalized families the most.

Dr. Park emphasized that governments must offer concessions specifically targeted at poor and at-risk households. He pointed out that Nepal has not provided such relief and that fuel prices in Nepal remain the highest in South Asia. “It is the government’s responsibility to support the most vulnerable groups. While delivering relief in such circumstances is challenging, it is imperative to allocate resources to assist those at greatest risk,” said ADB’s Chief Economist.

As a result of the ongoing conflict in West Asia, the Asia-Pacific region’s economic growth forecast has been further revised downward. ADB’s scenario projections expect persistent fuel supply disruptions in both 2026 and 2027, with crude oil prices projected at $96 per barrel in 2026 and $80 per barrel in 2027. This situation has led to increased fuel shortages and a significant divergence between spot and futures prices in the market.

According to Dr. Park, even if a ceasefire is achieved, shipping through the Strait of Hormuz has not returned to pre-conflict levels, critically affecting the transport of crude oil, LPG, LNG, and container vessels. Furthermore, ADB has raised concerns about South Asia, where 35% of chemical fertilizers utilized by countries in the region are imported from West Asia.

In Nepal, the shortage of fertilizers threatens the main paddy transplanting season starting in mid-June. Although Nepal has requested India to secure chemical fertilizer supplies, India itself is facing challenges, making the arrival of these fertilizers uncertain. This increases the risk of long-term impacts on food security in the region.