India Fires IMF Director in Bid to Block Release of $2.3 Billion to Pakistan

The Indian government has prematurely recalled International Monetary Fund (IMF) Executive Director K.V. Subramanian six months before the end of his tenure in a clueless attempt to block the release of $2.3 billion to Pakistan, top sources clarified in an informal interaction with ProPakistani. The lender did not immediately respond to a request for comment from ProPakistani at the time of filing this report. The Indian government canceled the young executive’s tenure at the agency ahead of the May 9 IMF Executive Board meeting for voting on Pakistan’s First Review. Sources said Subramanian was against the review policy for financing Pakistan’s debt obligations and tried to lobby favor against Islamabad and reinforce Indian foreign policy in the region and to put more pressure on its neighbor, having tried recently by suspending the Indus Water Treaty. He failed to convince the lender. The Indian government is trying to fast-track a quick replacement ahead of the board meeting scheduled for May 9, sources added. India recently requested the IMF to reassess the financial assistance it has provided to Pakistan. The lender straightaway rejected this request. Subramanian’s dismissal came right after this request was shelved. Sources argued that the Executive Board of the Washington-based lender works independently and doesn’t bend to political interference to benefit biased agendas of another country. The IMF Executive Board is composed of 24 executive directors, who are elected by member countries or by groups of countries, and the managing director serves as its chairman. The Board usually meets several times each week. It will meet on May 9 next week to formally vote on Pakistan’s case for the First Review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) for the next tranche of $1 billion, and on a new 28-month arrangement under the IMF’s RSF with total access over the 28 months of around $1.3 billion. The total package at this stage is worth roughly $2.3 billion.