Pahalgam terror attack: Did India sack IMF ED KV Subramanian to land next hefty blow to Pakistan?

In an unprecedented move, India on Saturday terminated the services of K.V. Subramanian as the executive director at the International Monetary Fund (IMF) six months ahead of the end of his tenure. Surprisingly, India has terminated Subramanian's services while the IMF is set to decide on financial aid to Pakistan.

 

As per a notification issued on April 30, the appointments committee of the Cabinet has terminated Subramanian's services with immediate effect. "The Appointments Committee of the Cabinet has approved the termination of services of Dr. Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund with immediate effect," the notification read. The committee is headed by Prime Minister Narendra Modi. 

 

According to reports, India reportedly terminated Subramanian's services after he raised questions about the IMF's datasets and it led to friction in the multilateral agency. Sources in the know of the developments told PTI that concerns were also raised over an "alleged impropriety" relating to the promotion and publicity of his latest book, "India @ 100". 

 

Subramanian, the former chief economic advisor of India, was appointed as the executive director (India) at the IMF with effect from November 1, 2022 for a period of three years. India is in a four-country constituency, along with Bangladesh, Sri Lanka and Bhutan as members.

 

India's move comes while the international financial body is set to consider financial aid for debt-ridden Pakistan. India is all set to oppose financial aid to Pakistan in the wake of the gruesome Pahalgam terror attack. India has reportedly urged the IMF to review its $7 billion loan programme for Pakistan in the wake of the attack, Reuters reported.

 

India has also reportedly begun efforts to bring Pakistan back under terror funding watchdog Financial Action Task Force (FATF)'s 'grey list'. Pakistan was on the ‘grey list’ earlier, between June 2018 and October 2022, and faced increased monitoring. Being on FATF's grey list adversely affects foreign investments in the country.

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