KARACHI: Prime Minister Shehbaz Sharif declared on Sunday Pakistan was making strides towards economic growth and prosperity, following the arrival of the country’s first shipment of 45,000 metric tons of discounted Russian crude oil on what was hailed as a “transformative day” for the country.

Pakistan has been actively seeking cheaper energy sources to address its crippling economic crisis, which saw its official forex reserves plummet to alarmingly low levels after dipping below $5 billion in recent months. To combat the situation, the government decided to curtail the country’s imports, which in turn slowed down the pace of the economy.

According to the Pakistan Bureau of Statistics, energy products constitute around 29 percent of the country’s total imports. Acquiring Russian crude oil at a discounted price has the potential to significantly reduce Pakistan’s import bill and create more fiscal space for the government.

“Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow,” the prime minister said in a Twitter post. “Today is a transformative day. We are moving one step at a time toward prosperity, economic growth and energy security & affordability.”

He also emphasized that this first oil shipment from Russia would mark the beginning of a new era in the bilateral relationship between the two countries.

Earlier, the Karachi Port Trust released a statement confirming the arrival of a vessel carrying 45,000 metric tons of Russian crude oil in the southern port city of Pakistan. The statement further indicated the consignment would be handed over to the Pakistan Oil Refinery for processing before the country gets an additional 50,000 metric tons of oil within a week.

Pakistan’s State Minister for Petroleum Musadik Malik revealed to the media last month that the country would start receiving Russian crude oil in small batches during the first half of June. While he refrained from disclosing the commercial details of the deal with Russia, he expressed optimism that a consistent supply of discounted oil would have a positive impact on the national economy.

Pakistan initiated its first order to import crude oil from Russia in April, following extensive negotiations between the two countries.

In January, Pakistan’s Foreign Minister Bilawal Bhutto-Zardari announced that the United States was briefed before the country engaged in petroleum and energy negotiations with Russia.

The move was made against the backdrop of G7 countries setting a price cap of $60 per barrel for countries procuring oil from Russia, as part of efforts to exert pressure on Moscow amid its conflict with Ukraine.