Iyer’s nomination was necessitated to fill a vacancy created with the termination of services of KV Subramanian as the executive director at the IMF, six months ahead of his three-year tenure.
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.
According to sources, had India not nominated Iyer, the alternative 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.
The reasons for Subramanian’s exit have not been officially announced.
In the past too, the IMF has been unhappy with some of the statements made by Subramanian, especially related to India’s debt situation.
