The government’s decision to appoint Parameswaran Iyer assumes significance as the IMF Executive Board will meet on May 9, to take a call on a new USD 1.3 billion loan under a climate resilience loan programme, along with the first review of the ongoing USD 7 billion bailout package for Pakistan.
Parameswaran Iyer, currently serving as the Executive Director (ED) at the World Bank, has been temporarily appointed as India’s nominee director on the board of the International Monetary Fund (IMF), news agency PTI reported citing sources. This key development comes ahead of a significant IMF Executive Board meeting scheduled for May 9, where critical financial decisions — including those impacting Pakistan — are on the table.
Iyer’s appointment fills the vacancy created by the premature termination of K V Subramanian’s tenure as India’s Executive Director at the IMF. Subramanian, who was appointed for a three-year term, had his services discontinued six months before completion. The reason for the early exit has not been officially disclosed.
The timing of this nomination is particularly notable. The IMF Executive Board meeting on May 9 is expected to consider a USD 1.3 billion loan under its climate resilience programme, along with the first review of the ongoing USD 7 billion bailout package extended to Pakistan.
It is to be noted that India is making efforts to corner Pakistan diplomatically and at various global fora as New Delhi believes its involvement in the Pahalgam terror attack that led to killing of 26 tourists last month. According to sources, had India not nominated Iyer, the alternate executive director Harischandra Pahath Kumbure Gedara of Sri Lanka would have discharged duties of ED as per the rules of the Washington-based multilateral funding agency. The Appointments Committee of the Cabinet has terminated Subramanian’s services effective April 30, 2025.
Who is Parameswaran Iyer?
Parameswaran Iyer, a bureaucrat turned international development professional, has had a remarkable career marked by service, innovation, and leadership. Currently serving as India’s executive director nominee at the World Bank, Iyer’s journey spans national and global platforms.
He began his career in the Indian Civil Services in 1981, where he steadily rose through the ranks. In 2009, he took voluntary retirement from government service to pursue an international role as a water resources manager at the World Bank. During his tenure there, Iyer worked on key water and sanitation projects across China, Vietnam, Egypt, Lebanon, and in Washington, DC, building a strong global reputation in public health and infrastructure.
In 2016, Iyer returned to India at the request of the government to lead the Swachh Bharat Mission, Prime Minister Narendra Modi’s flagship cleanliness and sanitation programme. Following this, he briefly served as the CEO of NITI Aayog, bringing in his global insights to India’s top policy think tank.
ALSO READ: Govt terminates services of IMF board nominee Krishnamurthy Subramanian with immediate effect