Recently, the cash-strapped Pakistan's negotiations with the IMF for a bailout package faced difficulties as the international lender sought complete disclosure of Chinese financial support and hiking of energy prices and levying more taxes.
The sources said the IMF also demanded that the provincial governments finance the Benazir Income Support Programme (BISP), instead of the federal government, and wanted committed cash surpluses to minimise the consolidated fiscal deficit.
While the Fund has not made any explicit reference to China, its most influential member, the US, has been unequivocal that Pakistan discloses the debt it owes to China, especially those related to the China-Pakistan Economic Corridor (CPEC).
Formally launching the IMF and World Bank annual meetings on the Indonesian resort island of Bali, Lagarde urged countries to "de-escalate" trade conflicts and fix global trading rules instead of abandoning them.
Indeed, the IMF on Tuesday cut its global economic growth forecasts for 2018 and 2019, saying that the US-China trade war was taking a toll and emerging markets were struggling with tighter liquidity and capital outflows.