ISLAMABAD - The International Monetary Fund (IMF) said on Monday Pakistan agreed to reverse unfunded subsidies ahead of talks to resume the 7th review in May.

"We agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review," the IMF said in a statement after discussions with the visiting Pakistani finance minister in Washington.

Pakistan has given over $2 billion of subsidies to the oil and power sectors.

(Reporting by Asif Shahzad; Editing by Christian Schmollinger)