India temporarily allocates Parameswaran Iyer to the IMF Board of Directors after abrupt termination of Krishnamurthy v Subramanian

People aware of the details said India has temporarily entrusted its World Bank executive director Parameswaran Iyer to be the nominated director of its International Monetary Fund Board (IMF).Iyer's nomination comes as the government's accidental termination of Krishnamurthy v. Subramanian as executive director of India's IMF last week and shortened his three-year term by about six months.
The move comes ahead of the crucial IMF board meeting on May 9, with a $1.3 billion credit line expected to determine climate resilience and review the ongoing $7 billion bailout plan for Islamabad.
New Delhi may oppose loans in the context of Pahargam terrorist attacks, attacking tourists who killed 26 people. However, advice to block or delay providing assistance to Pakistan will require extensive support for New Delhi at the IMF, experts said.

The IMF Board of Directors consists of 25 Executive Directors (EDs) representing various members and groups, and usually approve proposals through consensus. If consensus is elusive, then these suggestions can be voted and cleared by a majority. Typically, in this case, countries with high voting shares, especially the United States and others in the G7.

“However, if the proposal is presented before the IMF board of directors, it is very likely to be cleared. This is because management gets feedback from various countries before the meeting, otherwise it will not give these feedback to the board of directors for approval.” The U.S. has the highest voting share, while China has the highest voting share, with the highest turnout rate of nearly 6.1%, India has more than 2.6% and pakistan has 0.43%. The IMF's Executive Committee discusses the national, regional and global consequences of each member's economic policy and approves financing to help members resolve temporary balance issues in temporary payments. The board is largely based on papers and inputs prepared by IMF management and staff.

The executive director of the IMF is elected by the relevant member states or national groups. India is a constituency of four countries, Bangladesh, Sri Lanka and Bhutan as members. Therefore, its IMF executive director represents the interests of India and the other three.

As for Subramanian, the government has not cited any reason to terminate its services.

During his tenure at the IMF, Subramanian criticized the IMF data for underestimating India's growth and posted on X “Miscellaneous Profit Rate for IMF Employees”, which was “Miscellaneous Profit Rate for IMF Employees”.

Since the April 22 Pahalgam terrorist attack, India has launched a series of measures, including shelving the Indian Water Treaty with Pakistan, narrowing diplomatic ties and banning imports from neighboring countries, at a cost, at a cost to impose Islamabad terrorism in Kashmir.