Prime Minister Babu Ram Bhattarai on Friday said the government´s step to fix maximum retail price (MRP) for essential goods was not against the spirit of open economy, but at making consumers aware about what their prices should be in the market. 

"Fixing of MRP was not against the principle of open economy," Bhattarai said. "The government was just fulfilling its responsibility by making consumers aware about the existing price level in the market of major essential goods." 

Addressing the 15th anniversary of Society of Economic Journalist of Nepal (SEJON) on Friday, PM said that the private sector should not be worried by the step that the government took to ease lives of consumers, who have been reeling under haphazard price hikes. 

"Besides, the MRPs were set in consultation and by winning the confidence of the private sector," he said. 

The government had fixed MRP of essential goods such as rice, oil, lentils and others a couple of months ago. However, the step drew strong criticism from the private sector bodies like Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and economists. 

Despite the announcement of MRPs, the government has failed to get them enforced, as consumers complain retailers were still continuing to charge them prices higher than the MRPs. 

Similarly, Bhattarai has said that the country´s economy wouldn´t see any actual growth without a potential inflow of foreign direct investment (FDI) in mega projects and infrastructure development.

"We need more than Rs 600 to 700 billion of capital expenditure in each fiscal year in order to achieve real growth of economy," Bhattarai said. "We need inflow of FDI from different countries to inject such a huge amount of investment in the economy." 

Highlighting the government´s endeavor to lure FDI, PM Bhattarai said that the government was working to create a favorable environment for new investment. 

"The government is seriously working on settling the labor issues, central bank is trying to address the issues of interest rate and most importantly we have been amending slew of policies in order to create an enthusiastic environment for domestic as well as foreign investors," PM said.

Published on: 1 December 2012 | Republica