Parameswaran Iyer, currently Executive Director at the World Bank, has been temporarily appointed as India’s representative at the International Monetary Fund (IMF) ahead of a crucial board meeting on May 9, according to sources.
This move comes after the sudden termination of K V Subramanian, who was serving as India’s Executive Director at the IMF. His exit, six months before the end of his three-year term, created a vacancy that needed to be filled.
The timing is important as the IMF board is set to decide on a new $1.3 billion climate loan for Pakistan, along with the first review of an ongoing $7 billion bailout package. India’s representation at this meeting is seen as significant, especially given New Delhi’s ongoing diplomatic efforts to isolate Pakistan, which it blames for the recent Pahalgam terror attack that killed 26 tourists.
If India had not nominated Iyer, the role would have gone to Sri Lanka’s Harischandra Pahath Kumbure Gedara, the alternate executive director in India’s IMF constituency, which also includes Bangladesh and Bhutan.
The government has not officially stated why Subramanian was removed. However, sources suggest he had clashed with the IMF over data-related issues and made public comments that didn’t sit well with the agency, particularly concerning India’s debt. There were also concerns about his use of his position to promote his recent book India@100.
Iyer previously served as CEO of NITI Aayog from July 2022 to February 2023, where he led key reforms like the State Support Mission and helped accelerate the $25 billion Production Linked Incentive (PLI) scheme to boost manufacturing in India.
