New Delhi:
India's former International Monetary Fund (IMF) executive director, Krishnamurthy V Subramanian, has fact-checked Islamabad's claim of returning to global financial leadership as a "historic milestone", noting Pakistan's appointment to chair the IMF and World Bank Boards of Governors is "protocol, not power".
Taking to X, Subramanian noted, "Claim: 'Pakistan is heading back to the top table of global finance after 74 years!. Reality: Pakistan will chair the IMF-World Bank Annual Plenary in 2027. This chair is purely ceremonial & rotates annually: Paraguay this year, Cabo Verde in 2025. It's protocol, not power."
The rebuttal came after Pakistan was named the chair of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group (WBG) for 2027, returning to the position for the first time since 1953. Pakistan's Minister for Economic Affairs, Ahad Khan Cheema, who is also its governor to the World Bank, will take the position, Islamabad said in a statement.
Pakistan's Ministry of Economic Affairs termed the development a "historic milestone", saying the chairmanship would provide Islamabad an opportunity to contribute to global economic and development discussions and facilitate constructive dialogue among member countries.
What KV Subramanian said
In another post, Subramanian noted that comparing India's G20 and BRICS presidencies with Pakistan's rotating IMF-World Bank Annual Plenary chairmanship is a false equivalence.
"India's G20 presidency set the agenda for a major forum of global economic cooperation; its BRICS presidency drove an emerging-economies platform... Pakistan's role is to preside over an annual meeting," he said.
Pak's IMF Dependence
Pakistan is engaged with the IMF under a USD 7 billion Extended Fund Facility (EFF) and a USD 1.4 billion Resilience and Sustainability Facility (RSF). The country is borrowing under the EFF to address its balance-of-payments needs and support economic reforms, and the RSF provides longer-term financing to help the country address climate-related risks and strengthen its resilience.
The country is also expected to receive about USD 1.2 billion from the IMF, subject to approval by its Executive Board, after IMF staff and Pakistani authorities reached an agreement on the latest reviews of the two loan programmes.