KARACHI - Renowned economist Dr Shahid Hassan Siddiqui has described Kerry-Lugar Act (KLA) as disastrous from the financial point of view and therefore it must be rejected, as the explanatory note attached to the Act has no meaning. In an exclusive interview with The Nation on Saturday, he said, it must be understood clearly that Pakistan was already suffering losses of 8 billion dollars per year due to war on terror whereas the total US aid likely to be received by Pakistan is 3 billion dollars per year that includes $1.5 billion under KLA, therefore the country suffers a loss of $ 5 billion annually. Furthermore, accepting the KLA would not guarantee the stoppage of drone attacks, the US would continue to carry out drone attacks on Pakistani soil and agents of India and other countries would continue to infiltrate the Pakistani territory from US occupied Afghanistan for terrorist activities. He said as stated by the Foreign Minister, Pakistan has already suffered a loss of $ 40 billion after 9/11 whereas the total compensation paid by the US to Pakistan is only 12 billion dollars meaning net loss of $ 28 billion. The economy of Pakistan cannot sustain these losses and Pakistan needed about $75 billion for infrastructure, construction of dams and other projects in next few years. In case terrorists activities, suicide bombings and the US drone attacks continued, Pakistan is not likely to receive Foreign Direct Investment (FDI) from abroad, he added. The matter of fact was that US is tightening the noose around the neck of Pakistan through the agenda of Friends of Democratic Pakistan as announced on September 26, 2008 and by not honouring commitment of financial assistance of 5.28 billion dollars, despite imposing tough contradictory and damaging conditionality linked to IMF loans. It is also important that the decision made in the meeting of Friends of Democratic Pakistan group may be presented before the parliament as they are detrimental to the national interests and security of Pakistan. It was due to these facts that within days of this meeting I had termed it as a trap for Pakistan as its objective was to push the country towards IMF and this group had no intention whatsoever to give any financial package. It would therefore remain a mystery as to why a receipt of funds of Rs178b was made in the federal budget passed in June 2009. The whole budget has therefore become meaningless. When asked what could be the solution for Pakistan to come out of financial tight spot, he said the solution lay in getting a resolution passed from the parliament stating- US government must compensate of $ 8 billion per year. No aid will, therefore, be needed under KLA and the fences on the Pak-Afghan border must be installed to stop terrorists from Afghanistan entering Pakistan. Parliament must frame a law requiring the members of the parliament, rulers, politicians and economic managers to transfer their banks accounts from abroad to Pakistan in three week time. This would alley fears of overseas Pakistanis that their foreign currency accounts would not be frozen. The overseas should then be offered interest rate of 6 per cent per annum on their foreign currency deposits in Pakistan. It needs to be appreciated that deposits of Pakistanis in foreign banks are to the tune of $ 50 billion and the deposits of overseas Pakistanis are about $125 billion. If only 10 per cent of these deposits are received by the banks in Pakistan, we could not only reject the KLA on the existing conditions but could also say goodbye to IMF, he maintained. We would then be in a position to frame our own home grown policies for war on terror including resolving the problems in Waziristan through dialogue and formulate and implement home-grown pro-poor economic policies to accelerate GDP growth ratio and for achieving self-reliance, he concluded.