India terminates its IMF board member ahead of Pakistan’s review

ISLAMABAD: After making desperate requests to the International Monetary Fund (IMF) to review loans disbursed to Pakistan, the Government of India has terminated Dr Krishnamurthy Subramanian as the board member and Executive Director (India) of the fund.

The move has been made six months ahead of Dr Subramanian’s end of the tenure.

Appointment Committee of the Cabinet (ACC) issued an order on Wednesday (April 30), saying that the ACC “has approved termination of Dr Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund (IMF) with immediate effect.”

Analysts see this as a major development for the upcoming Pakistan’s review before the IMF executive board meeting on May 9 as as tensions between the South Asian neighbours escalated following a deadly attack in Pahalgam area of Kashmir.

Earlier on Friday, Reuters reported that India asked the IMF to review loans disbursed to Pakistan.

Pakistan secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.

The programme is critical to the $350 billion economy and Pakistan said it has stabilized under the bailout that helped it stave off a default threat.

India raised concerns with the IMF on its loans to Pakistan, asking for a review, a government source told Reuters without elaborating.

The advisor to Pakistan’s finance minister said the IMF programme is “well on track”.

“The latest review has been done well and we are completely on track,” advisor Khurram Schehzad, told Reuters, adding that Pakistan had very productive spring meetings with financial institutions in Washington.

“We did about 70 meetings … interest has been very high for investing and supporting Pakistan as the economy turns around,” Schehzad said.

Meanwhile, the IMF’s Resident Representative for Pakistan confirmed to media on Saturday: “The Executive Board meeting for the first EFF review and RSF request is scheduled for May 9. The Board meeting is going to take place as planned so there is no change.”