The government’s decision assumes significance as the IMF Executive Board will meet on May 9, 2025. File
| Photo Credit: Reuters

“Parameswaran Iyer, executive director at the World Bank, has been temporarily entrusted with the responsibility of being India’s nominee director on the board of International Monetary Fund (IMF) ahead of a crucial May 9 meeting,” sources said.

Mr. Iyer’s nomination was necessitated to fill a vacancy created with the termination of services of K.V. Subramanian as the executive director at the IMF, six months ahead of his three-year tenure.

The government’s decision assumes significance as the IMF Executive Board will meet on May 9, to take a call on a new $1.3 billion loan under a climate resilience loan programme, along with the first review of the ongoing $7 billion bailout package for Pakistan.

New Delhi’s plan to ask IMF to review Pak. loans is politically motivated: Islamabad

It is to be noted that India is making efforts to corner Pakistan diplomatically and at various global fora as New Delhi believes its involvement in the Pahalgam terror attack that led to killing of 26 tourists last month.

According to sources, had India not nominated Iyer, the alternate executive director Harischandra Pahath Kumbure Gedara of Sri Lanka would have discharged duties of ED as per the rules of the Washington-based multilateral funding agency. The Appointments Committee of the Cabinet has terminated Subramanian’s services effective April 30, 2025. The reasons for Subramanian’s exit have not been officially announced.

India to ask global multilateral agencies to review loans, grants to Pakistan: Source

According to the sources, Subramanian is learnt to have raised questions about the IMF’s datasets, which did not go down well in the corridors of the multilateral agency. In the past too, the IMF has been unhappy with some of the statements made by Subramanian, especially related to India’s debt situation.

Besides, the sources said, concerns were raised over an “alleged impropriety” relating to the promotion and publicity of his latest book, ‘India@100: Envisioning Tomorrow’s Economic Powerhouse’. The executive board of the IMF is composed of 25 directors (executive directors or EDs) elected by the member countries or groups of countries. India is in a four-country constituency, along with Bangladesh, Sri Lanka and Bhutan as members.