Parameswaran Iyer to Represent India at IMF Board Amid Strategic Global Meeting

Why in News?

India’s Finance Ministry has appointed Parameswaran Iyer as interim nominee to the IMF Executive Board. This comes ahead of the IMF’s critical decision-making meeting on May 9, where it will deliberate on: A $1.3 billion climate resilience loan, and The first review of Pakistan’s $7 billion bailout package.

Who is Parameswaran Iyer?

• Former CEO of NITI Aayog.
• Currently serving as Executive Director at the World Bank.
• Known for leading India’s Swachh Bharat Mission.

Why was the Change Necessary?

• K.V. Subramanian’s services were terminated by the Appointments Committee of the Cabinet (ACC) effective April 30, 2025.
• Subramanian reportedly raised concerns over IMF datasets and promoted his book, India@100, during his tenure, drawing criticism.

Static Facts

• IMF Executive Board: Comprises 25 directors.
• India’s Constituency: Includes India, Bangladesh, Sri Lanka, and Bhutan.
• Alternate ED: Harischandra Pahath Kumbure Gedara of Sri Lanka would have taken charge if India hadn’t acted.

Strategic Importance of IMF Meeting (May 9, 2025)

Discussions on approving,

• A $1.3 billion climate resilience loan.
• A crucial $7 billion bailout review for Pakistan.
• India is reportedly lobbying global financial institutions to reassess loans to Pakistan due to alleged involvement in recent terror attacks, including the Pahalgam incident that killed 26 tourists.

Significance

• Ensures Indian representation and voting power at a pivotal moment.
• Aligns with India’s diplomatic positioning against Pakistan.
• Highlights the importance of trusted representation at multilateral financial institutions.