KARACHI, Aug 20: The government plans to hire a private sector insurance company to provide social security cover to the workers of Export Processing Units (EPUs). Under the trade policy announced last month, all units exporting over 80 per cent of their production would be declared EPUs and would enjoy the status of industrial units located at Export Processing Zones.

It had been a long-standing demand of export-oriented industry to give them the status of EPU exempting them from compliance of local labour laws.

Secretary Ministry of Textile Zafar Mahmood in a meeting with exporters at Pakistan Hosiery Manufacturers Association (PHMA) here on Monday disclosed that a committee was working on a feasibility of giving social security cover to EPU workers through a private sector insurance company.

Presently, all industrial units outside special processing zones have to be socially-compliant through Employees Old Age Benefit Institute (EOBI) and Sindh Employees Social Security Institute (SESSI) by paying certain amount per worker.

The secretary also said that a special committee would be set up to look into day-to-day problems confronting exporters of value-added apparel and home textile. “The members of this committee will belong to such government departments with whom exporters have to interact frequently such as customs, banks TDAP”.

Mr Zafar assured exporters that other compliance procedures would be simplified so that exporters did not waste their time and could fully concentrate on product development and marketing.

He agreed that raw cotton prices were rapidly rising which inhibited exporters from making export commitments. The secretary said that after the developed countries withdraw subsidies on their farm produce it would have direct impact on raw cotton prices as well.

He assured the exporters that the government was already making efforts to ensure that raw cotton prices stay within the reach of exporters so that they could compete in the world market.

Similarly, he said that work on RoZs was in progress.