In a significant development, the Government of India has, according to reports, asked Parameswaran Iyer, India’s Executive Director at the World Bank, to temporarily assume the additional charge as the country’s representative on the International Monetary Fund (IMF) Board. This comes ahead of a crucial IMF meeting on May 9 to consider Pakistan’s request for a fresh loan.
The appointment was made to fill the vacancy created by the abrupt termination of Dr. Krishnamurthy Subramanian’s tenure as Executive Director at the IMF, six months before its scheduled end. Subramanian’s exit, approved by the Appointments Committee of the Cabinet with effect from April 30, forced him to withdraw from official IMF engagements, including a key meeting on May 2.
India’s decision to nominate Iyer is strategic, given its strong opposition to any further financial support to Pakistan, citing its continued involvement in financing cross-border terrorism. Tensions escalated further following a recent terror attack in Pahalgam, attributed to Pakistan, that claimed 26 lives.
Had the Indian seat remained vacant, it would have been assigned to Sri Lanka’s representative, Harischandra Pahath Kumbure Gedara, as per IMF protocol.
Parameswaran Iyer, who earlier served as CEO of NITI Aayog, currently represents India at the World Bank. His temporary nomination ensures continuity in India’s voice at a time when sensitive geopolitical and financial decisions are at stake.
The IMF Executive Board comprises 25 Executive Directors elected by member countries or constituencies, along with the Managing Director, and is responsible for the institution’s daily operations and major decisions.
Also Read: Govt terminates Krishnamurthy Subramanian’s tenure as India’s ED at IMF
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