India's Executive Director at the World Bank and former senior bureaucrat, Parameswaran Iyer, has been appointed as India's nominee representative temporarily on the board of the International Monetary Fund (IMF). His appointment comes at a crucial moment as the IMF Executive Board is scheduled to decide on a climate resilience loan to Pakistan on May 9. The move comes just after after termination of K.V. Subramanian as India's Executive Director at the IMF, six months before the end of his three-year term.

After Subramanian's exit, the IMF's website listed the position as vacant, and Harischandra Pahath Kumbure Gedara is listed as the alternate director for the constituency that comprises India, Bangladesh, Bhutan, Nepal, and Sri Lanka. According to sources cited by The Hindu, Subramanian's removal is linked to internal disagreements over IMF data assessments and alleged improprieties related to the promotion of his book. His scathing criticism of India's debt management, as well as questions raised by him over the IMF datasets, reportedly drew concerns.

The IMF session on May 9 is likely to consider the 7 billion USD Pakistan bailout program and approve another 1.3 billion USD under the Resilience and Sustainability Facility (RSF). New Delhi has strongly protested any financial help being provided to Pakistan following last month's terror attack in Pahalgam that claimed 26 lives. Indian authorities contend that global institutions such as the IMF need to review lending to states accused of funding terrorism.

Who Is Parameswaran Iyer?

Born in Srinagar in 1959, Parameswaran Iyer is a veteran bureaucrat and policy strategist. An alumnus of The Doon School and St. Stephen's College, Delhi, Iyer played representative junior international tennis for India and pursued his studies at Davidson College, North Carolina, on an exchange programme.

Also read: India Set To Hit Back At Pakistan's Economy, Pushes Global Agencies To Reconsider Loans, Grants

He was part of the Indian Administrative Service (IAS) since 1981 but resigned in 2009 to serve as a water resources specialist at the World Bank. His postings included trips around China, Egypt, Vietnam, Lebanon, and the US. In 2016, Prime Minister Narendra Modi himself appointed Iyer to head the Swachh Bharat Mission, India's national sanitation drive. He then headed the Jal Jeevan Mission for the provision of piped water to all rural homes. Iyer briefly held the position of CEO of NITI Aayog in 2022 before assuming that of Executive Director at the World Bank in 2023.

With Iyer taking over as India's voice on the IMF board, the government wants to make sure that its policy position, particularly on matters such as Pakistan's financing, is clearly stated at the international level.

Also read: India’s IMF Representative Sacked: Who Is Dr KV Subramanian? Here’s What You Need To Know