Parameswaran Iyer, Executive Director at the World Bank, has been temporarily appointed as India's nominee director on the International Monetary Fund (IMF) board ahead of a critical May 9 meeting, according to sources. Iyer's nomination was necessary to fill a vacancy created by K V Subramanian's departure as executive director of the IMF six months before the end of his three-year term.
The government's decision is significant because the IMF Executive Board will meet on May 9 to approve a new USD 1.3 billion loan under a climate resilience loan programme, as well as the first review of Pakistan's current USD 7 billion bailout package.
It should be noted that India is attempting to corner Pakistan diplomatically and at various global fora, believing it is responsible for the Pahalgam terror attack that killed 26 tourists last month.
According to sources, if India had not nominated Iyer, Sri Lanka's alternate executive director, Harischandra Pahath Kumbure Gedara, would have performed ED duties in accordance with the Washington-based multilateral funding agency's rules.
As of April 30, 2025, Subramanian's job has been terminated by the Cabinet Appointments Committee.
Officially, Subramanian's reasons for leaving have not been disclosed.
Sources claim that Subramanian expressed disapproval of the IMF's datasets, which upset officials at the multilateral organization.
Some of Subramanian's remarks, especially those pertaining to India's debt situation, have previously drawn criticism from the IMF.
Concerns have also been expressed regarding a "alleged impropriety" in the advertising and promotion of his most recent book, "India@100: Envisioning Tomorrow's Economic Powerhouse," the sources said.
The 25 directors (also known as executive directors or EDs) that make up the IMF's executive board are chosen by member nations or groups of nations.
Bangladesh, Sri Lanka, Bhutan, and India are all members of the four-nation constituency.
