BALI, Indonesia—International Monetary Fund Managing Director Christine Lagarde said a bailout deal with Pakistan would require “absolute transparency” of its debts, many of which come from China’s landmark Belt-and-Road initiative.

China started a $62 billion investment program in Pakistan three years ago to build roads, power plants, a port and other infrastructure. It is financed by Pakistani debt or obligations to buy electricity from the new Chinese power plants. The details of the deals haven’t been made public.

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