Gwadar now has European and Russian backing amid a heavy round of FDI

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Gwadar now has European and Russian backing amid a heavy round of FDI

Posted on 24 April 2017

Next Dubai? You would be accused of thinking too small according to a Russian source.



Rejuvenated by the China-Pakistan Economic Corridor (CPEC), Pakistan’s investment outlook has reached a new high. Foreign Direct Investments (FDIs) are surging in Pakistan as the China-Pakistan Economic Corridor (CPEC) leads the country to a stable economic outlook. Pakistan’s FDIs are up by 39% in the previous 12 months. The largest contributor to FDIs in the previous fiscal year had been China with its massive $595 m primarily for CPEC projects, and is closely followed by Netherlands and France. Reports are now confirming UK and Spanish interests amid an economic war of words following Britains vote to leave the European Union.





Pakistan has also approved Russia’s request to use Gwadar port in Balochistan being developed by China under the USD 46 billion CPEC, an article in the state-run media has reported.

“The China-Pakistan Economic Corridor (CPEC), as a flagship project of the One Belt and One Road (OBOR) initiative, has drawn a great deal of investments,” the article in Global Times said.

“Apart from the fact that Pakistan has approved a Russian request for using the Gwadar Port, located in Balochistan Province, for its exports, media reports were swirling that Russia planned to merge the Moscow-led Eurasian Economic Union (EAEU) with the CPEC,” the article titled ‘Russia can be a welcoming presence at CPEC’ said.

This will undoubtedly turn Pakistan into an economic and regional power house with a significant part of Asia pinning their own economic hopes on the Gwadar port and access to the worlds major shipping lanes.

Russia’s joining of CPEC will be an opportunity for China, Russia and Pakistan to enhance cooperation, Chinese Tabloid Global Times said in a report.

The China-Pakistan Economic Corridor (CPEC), was described as the flagship project of the One Belt and One Road (OBOR) initiative

 

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Eurasian Economic Union

Administrative centers

• Moscow, Russia
  (Commission)
• Minsk, Belarus
  (Court)

Largest city Moscow
55°45′N 37°37′E
Official languages Armenian, Belarusian, Kazakh, Kyrgyz, Russian
Type Economic union
Member states

Armenia

Belarus

Kazakhstan

Kyrgyzstan

Russia
Leaders
• Chairman of the Eurasian Commission

Tigran Sargsyan
Establishment
• Original proposala
1994
• Economic Community
10 October 2000
• Eurasian Customs Union
1 January 2010
• Establishment agreed
18 November 2011
• Eurasian Economic Space
1 January 2012
• EEU Treaty signed
29 May 2014
• EEU established
1 January 2015
Area
• Total
20,229,248[1] km2(7,810,556 sq mi)
Population
• 2015 estimate
183,319,693[2][3][4][5][6](including Crimea)
• Density
9.06/km2 (23.5/sq mi)
GDP (PPP) estimate
• Total
US$4.198 trillion[7]
GDP (nominal) 2013 estimate
• Per capita
US$13,151

The Eurasian Economic Union (EAEU)[note 1] is an economic union of states located primarily in northern Eurasia. A treaty aiming for the establishment of the EAEU was signed on 29 May 2014 by the leaders of Belarus, Kazakhstan and Russia, and came into force on 1 January 2015.[8]Treaties aiming for Armenia's and Kyrgyzstan's accession to the Eurasian Economic Union were signed on 9 October and 23 December 2014, respectively. Armenia's accession treaty came into force on 2 January 2015.[9] Kyrgyzstan's accession treaty came into effect on 6 August 2015.[10][11] It participated in the EAEU from the day of its establishment as an acceding state.[12][13]

In 1994, the President of Kazakhstan, Nursultan Nazarbayev, first suggested the idea of creating a "Eurasian Union"[14][15] during a speech at Moscow State University. Numerous treaties were subsequently signed to establish the trading bloc gradually. Many politicians, philosophers and political scientists have since called for further integration towards a monetary, political, military and cultural union.[16][17] However the member states decided to seek a purely economic union, having concerns about keeping their independence and sovereignty intact.[18][19][20]

The Eurasian Economic Union has an integrated single market of 183 million people and a gross domestic product of over 4 trillion U.S. dollars (PPP).[21] The EAEU introduces the free movement of goods, capital, services and people and provides for common policies in macroeconomic sphere, transport, industry and agriculture, energy, foreign trade and investment, customs, technical regulation, competition and antitrust regulation. Provisions for a single currency and greater integration are envisioned in future.[22][23][24] The union operates through supranational and intergovernmental institutions. The Supreme Eurasian Economic Council is the "Supreme Body" of the Union, consisting of the Heads of the Member States. The second level of intergovernmental institutions is represented by the Eurasian Intergovernmental Council (consisting of the Prime Ministers of member states). The day-to-day work of the EAEU is done through the Eurasian Economic Commission (the executive body), which is a supranational body similar to European Commission. There is also a judicial body – the Court of the EAEU.[25]


This is what is being proposed to be linked to CPEC