The Indian government has terminated the services of its Executive Director, Dr Krishnamurthy Subramaniam, at the International Monetary Fund (IMF) six months before his tenure was set to conclude. Dr Subramaniam’s termination, effective from April 30, 2025, came without any explanation for cutting short the term.
According to The Times of India, this decision was made just days before a crucial IMF board meeting to decide on a fresh $1.3 billion climate resilience loan for Pakistan.
A government notice stated, “The Appointment Committee of the Cabinet (ACC) has approved the termination of the Executive Director (India) at the International Monetary Fund with immediate effect.” The ACC, which made this decision, is headed by Prime Minister Narendra Modi.
India’s youngest Chief Economic Advisor from 2018 to 2022, the executive director took up the IMF role in November 2022. In this capacity, he represented India, Bangladesh, Sri Lanka, and Bhutan at the IMF. His tenure was set to end in November 2025 after a three-year term.
Sources indicate that Dr Subramaniam had raised concerns about the IMF’s datasets, a stance reportedly not well-received by the multilateral agency. In the past, the IMF had expressed dissatisfaction with some of the executive director’s statements, particularly those relating to India’s debt situation.
Indian news agency PTI (Press Trust of India) reported that Parameswaran Iyer, Executive Director at the World Bank, has been temporarily assigned as India’s nominee director on the IMF board ahead of the important May 9 meeting.
The IMF’s executive board comprises 25 directors, elected by member countries or groups of countries. India shares a four-country constituency with Bangladesh, Sri Lanka, and Bhutan.
According to a Reuters report, India had asked the IMF to review loans disbursed to Pakistan as tensions between the South Asian neighbours escalated following a deadly attack in occupied Kashmir.
However, the IMF has not accepted India’s request to revisit Pakistan’s ongoing loan arrangements, reaffirming its schedule to proceed with the first review of the program as planned.
The Fund’s Executive Board is set to convene on May 9 to assess Pakistan’s performance under the current $7 billion Stand-By Arrangement (SBA), alongside a $1.3 billion climate resilience loan.
