Ahead of an important International Monetary Fund (IMF) Executive Board meeting, the Indian government has fired IMF Executive Director K.V. Subramanian, reportedly in a last-ditch effort to obstruct the approval of a $2.3 billion financial package for Pakistan. India fires IMF Director six months before the end of his tenure, igniting intense speculation over its geopolitical motives and its attempt to influence a multilateral financial process.
According to senior diplomatic sources, Subramanian had been lobbying within the IMF against releasing the next tranche of funding to Pakistan, aligning with India’s broader foreign policy efforts to isolate its neighbor economically; these efforts, however, failed to gain traction within the lender’s independent executive structure. The dismissal of the executive director came shortly after the IMF rejected India’s formal request to reassess the financial support being extended to Islamabad.
The recall comes just days ahead of the IMF Executive Board’s scheduled vote on May 9 regarding Pakistan’s First Review under the 37-month Extended Fund Facility (EFF), which includes a $1 billion disbursement, as well as a new 28-month arrangement under the Resilience and Sustainability Facility (RSF), totaling an additional $1.3 billion. The combined package stands at approximately $2.3 billion.
Sources suggest that India is now rushing to appoint a replacement before the decisive meeting, though the IMF Board—comprising 24 executive directors elected by member nations—has a longstanding reputation for acting independently of political pressures.
While the IMF has not officially commented on the abrupt termination of Subramanian’s tenure, experts believe the attempt to politicize the institution’s processes may backfire, potentially straining India’s credibility within international financial circles.
Read more: Pakistan’s Current IMF Program Could Be Its Last: IMF Mission Chief
