NEW DELHI: In a sudden move, govt has removed Krishnamurthy Subramanian, its nominee on the IMF board, six months before his tenure was to end.
The decision comes days before a crucial meeting of the IMF board to decide on a fresh $1.3bn climate resilience loan to Pakistan. Govt has upped the ante at multilateral agencies, including World Bank & ADB, seeking to block the flow of financial support to Pakistan. Subramanian did not respond to a text message from TOI late Saturday evening.

Finance secretary Ajay Seth frontrunner to replace Subramanian

Govt sources said the decision to recall K Subramanian from the IMF board came after the former chief economic adviser in the finance ministry questioned IMF datasets, the latest episode in his skirmishes with the multilateral agency. Besides, there are allegations of impropriety by the Indian School of Business professor in promoting his latest book, ‘India @100: Envisioning Tomorrow’s Economic Powerhouse’.
Govt is yet to name a replacement, although finance secretary Ajay Seth, who retires at the end of June, is seen as a frontrunner for the job. Subramanian, who took up the current assignment in Nov 2022, had been given a three-year term. Govt nominates executive director for India, Bhutan, Bangladesh and Sri Lanka, a post that is now lying vacant, according to IMF website. Harischandra Pahath Kumbure Gedara is listed as alternate director.
In the past too, IMF has been unhappy with some of the statements made by Subramanian, who in 2021 had decided to step down as CEA after his three-year term ended and return to academia. But, 11 months later, he moved to Washington to take up the role as IMF executive director.