World Bank Executive Director Parameswaran Iyer to represent India at IMF board

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.

Iyer's nomination was necessitated to fill a vacancy created with the termination of services of KV 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 USD 1.3 billion loan under a climate resilience loan programme, along with the first review of the ongoing USD 7 billion bailout package for Pakistan.

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.

According to sources, had India not nominated Iyer, the alternative 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.

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.