New Delhi, May 5: The Government has asked Parameswaran Iyer, Executive Director at the World Bank, to temporarily take up the additional responsibility as India's nominee director on the IMF Board, ahead of the crucial meeting on May 9 to consider Pakistan’s case for a loan from the multilateral institution, according to reliable sources.

Iyer will represent India on the IMF Board as the slot has fallen vacant following the recall of K.V. Subramanian as the country’s executive director, six months ahead of his three-year tenure.

The IMF Executive Board will meet on May 9, to take a decision on a fresh $1.3 billion loan to Pakistan under a climate resilience programme, along with the first review of the ongoing $7 billion bailout package that has been given to the neighbouring country.

India is staunchly opposed to extending financial assistance to Pakistan because of serious concerns over the neighbouring country’s role in financing terrorism. The IMF meeting comes within days of the horrific terror attack in Pahalgam, sponsored by Pakistan, in which 26 people were killed.

Sources disclose that if Iyer had not been appointed as IMF executive director, this slot would have been filled by Sri Lanka’s Harischandra Pahath Kumbure Gedara in accordance with the rules of the funding agency.

The Appointments Committee of the Cabinet terminated Subramanian's services with effect from April 30, 2025. He had to abruptly cancel his participation in a meeting on May 2 as he did not represent the country any longer.

According to sources, Subramanian is reported to have raised questions about the IMF's datasets, which did not go down well with the Washington-based funding agency. Another concern allegedly involved the promotion and publicity surrounding Subramanian’s recent book India @ 100, which was viewed as an impropriety given his position at the IMF.

The Executive Board of the IMF comprises 25 Directors (Executive Directors or EDs) elected by the member countries or groups of countries. Subramanian had been appointed to the IMF post in August 2022 and took charge on November 1 that year, representing India, Bangladesh, Sri Lanka, and Bhutan on the Fund’s Executive Board.

Prior to this, he served as India’s Chief Economic Adviser from 2018 to 2021. Iyer was the Chief Executive Officer of NITI Aayog, before he joined the World Bank as India’s representative.

During his stint at NITI Aayog, he played a key role in the launch of initiatives such as the flagship State Support Mission and the Aspirational Block Program, and accelerated the implementation of the PLI scheme, aimed at creating global manufacturing champions in India.

(IANS)

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