India’s desperate attempts to derail Pakistan’s IMF program won’t work, experts

KARACHI: Experts assert that India’s efforts to disrupt Pakistan’s IMF programme will have no impact and it will proceed as planned.

In a recent move, India has terminated Dr Krishnamurthy Subramanian as a board member and Executive Director (India) at the IMF, seemingly in an attempt to interfere with the scheduled IMF meeting on May 9.

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This move comes six months ahead of Dr Subramanian’s term expiry. The Indian Cabinet’s Appointments Committee issued an order on April 30, stating that the ACC had approved the termination of Dr Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund (IMF) with immediate effect.

“Indian pressure will not affect the upcoming IMF Executive Board approval, as Pakistan is already part of the programme. The country has fulfilled all prerequisites and secured staff-level approval without any additional conditions,” said Muhammad Awais Ashraf, Director of Research at AKD Securities, to Hum News English.

The IMF Executive Board meeting scheduled for May 9 is set to discuss Pakistan’s loan programme, specifically the $1.3 billion staff-level agreement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

“If someone resigns from the board, it’s unlikely to directly impact the meeting or the loan programme approval process,” said Mohammad Rizwan Khan, Director at Chase Securities, to *Hum News English*.

IMF’S DECISION-MAKING PROCESS

The IMF’s Executive Board consists of 24 directors representing all 190 member countries. Decisions are made through a formal process, and the board’s discussions are guided by the organisation’s articles of agreement and policies, Rizwan explained.

The May 9 meeting is already scheduled, and the agenda is likely finalised. Its purpose is to discuss Pakistan’s loan programme and approve the disbursement of funds.

The resignation of one member might not significantly affect the board’s decision-making process, as the remaining members would still represent a broad range of countries and interests, he added.

The meeting is expected to discuss Pakistan’s EFF and RSF programmes, approve the disbursement of approximately $1 billion under the EFF, and bring total disbursements under the programme to around $2 billion.

IMF Executive Board meetings are crucial for countries like Pakistan, which rely on these programmes for economic stability and growth. In this context, the meeting on May 9 is likely to proceed as scheduled, regardless of any potential resignations.

“The resignation of the Indian member shouldn’t matter. This is one director out of 25,” said Samiullah Tariq, Head of Research and Development at Pakistan Kuwait Investment Company, to Hum News English.

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Earlier, on May 2, India requested the IMF to review loans disbursed to Pakistan, as tensions between the South Asian neighbours escalated following a deadly attack in Kashmir.

India and Pakistan announced a number of measures after an attack on tourists in Jammu and Kashmir last week killed 26 people, raising fears of a wider military conflict between the two nuclear-armed neighbours.