New Delhi: In a significant diplomatic move, the Government of India has reportedly appointed former IAS officer Parameswaran Iyer (1981 batch, Uttar Pradesh cadre), the country’s Executive Director at the World Bank, to temporarily assume additional responsibilities as India’s representative on the International Monetary Fund (IMF) Executive Board.
This appointment comes just days before a pivotal IMF meeting on May 9 to consider Pakistan’s request for a fresh loan.
The interim arrangement follows the abrupt termination of Dr. Krishnamurthy Subramanian’s tenure as India’s Executive Director at the IMF, six months before its official end. The Appointments Committee of the Cabinet approved his exit with effect from April 30, compelling Subramanian to withdraw from all official IMF engagements, including a key preparatory meeting on May 2.
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Sources suggest that Iyer’s appointment is a strategic step to maintain India’s influence at the IMF, especially given New Delhi’s firm stance against any financial assistance to Pakistan. India has long accused Pakistan of harboring and financing cross-border terrorism – a position underscored by a recent terror attack in Pahalgam that killed 26 civilians and further strained bilateral relations.
Had India’s seat at the IMF been left vacant, it would have temporarily transferred to Sri Lanka’s representative, Harischandra Pahath Kumbure Gedara, in accordance with IMF protocol – a scenario India was keen to avoid at this sensitive juncture.
Mr Iyer, who previously served as CEO of NITI Aayog, currently holds India’s seat at the World Bank. His temporary nomination to the IMF Board ensures policy continuity as the multilateral body prepares for high-stakes discussions that could shape South Asia’s financial and security landscape.
Mr Iyer has worked with both the public and private sectors. He was Secretary to the Government of India in the Ministry of Drinking Water and Sanitation in New Delhi during 2016-20.
The IMF Executive Board comprises 25 Executive Directors elected by member countries or constituencies, in addition to the Managing Director. It is the primary decision-making body overseeing the Fund’s daily operations and policy approvals.
Mr Iyer joined the Indian Civil Services in 1981. In 2009, he took a voluntary retirement to become the water resources manager at the World Bank. At the World Bank he worked in China, Vietnam, Egypt, Lebanon and Washington, D.C. He also served as a Professor of Management Practices at Indian Institute of Management (IIM), Ahmedabad.