New Delhi: The Indian government has appointed Parameswaran Iyer, a senior official at the World Bank, to temporarily serve as India’s nominee director on the IMF Board, ahead of an important meeting scheduled for May 9. This development comes following the early termination of K.V. Subramanian’s tenure as India’s IMF representative.
The upcoming IMF Board meeting is expected to decide on a $1.3 billion climate resilience loan for Pakistan, as well as conduct the first review of its ongoing $7 billion bailout package for the neighboring country. India has publicly opposed extending financial aid to Pakistan, citing concerns over the country’s role in supporting terrorism, especially in the wake of a recent terror attack in Pahalgam that claimed 26 lives and was allegedly sponsored by Pakistan.
With the vacancy created by Subramanian’s departure, Iyer—former CEO of NITI Aayog and India’s representative at the World Bank—has been asked to step in. Had the appointment not been made, the slot would have been filled by Sri Lanka’s Harischandra Pahath Kumbure Gedara, according to IMF rules.
Subramanian, who was appointed to the IMF in August 2022 and served as India’s chief economic adviser before that, was abruptly removed from his position on April 30 after the government’s Appointments Committee decided to end his tenure early. His departure followed internal disagreements within the IMF, reportedly over issues including the datasets used by the organization and controversy surrounding his recent book, India @ 100, which was deemed inappropriate given his role.
Iyer, who previously led major initiatives at NITI Aayog, notably the State Support Mission and the Aspirational Districts Program, now faces this critical diplomatic role as India prepares for a pivotal IMF decision impacting regional stability.