Parameswaran Iyer, currently serving as Executive Director at the World Bank, has been temporarily appointed as India’s nominee director to the IMF board. This decision comes ahead of a significant IMF Executive Board meeting scheduled for May 9, where crucial decisions will be made regarding a \$1.3 billion climate resilience loan and the first review of Pakistan’s ongoing \$7 billion bailout programme. Iyer’s appointment fills the vacancy created by the early termination of K V Subramanian’s tenure as India’s executive director at the IMF, which ended six months before completion.
Sources indicate that the termination of Subramanian’s services, effective April 30, 2025, was decided by the Appointments Committee of the Cabinet, though no official reason has been provided. However, it is believed that Subramanian’s questioning of IMF data and past remarks about India’s debt may have contributed to his removal. Additionally, concerns were reportedly raised about potential improprieties related to the promotion of his book, ‘India\@100: Envisioning Tomorrow’s Economic Powerhouse’.
India’s prompt nomination of Iyer prevented Sri Lanka’s alternate executive director, Harischandra Pahath Kumbure Gedara, from temporarily representing the constituency. India is part of a four-nation constituency at the IMF alongside Bangladesh, Sri Lanka, and Bhutan. The government’s move is viewed as a strategic step, particularly as India intensifies diplomatic efforts to isolate Pakistan following its alleged role in the recent Pahalgam terror attack that killed 26 tourists.
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