Use of unlawful remittance channels on the rise in Pakistan.

The State Bank governor on Friday said overseas Pakistanis were increasingly using informal channels to send remittances to the country.

"We are seeing that the use of formal channels for sending money [by expatriates] is not growing as much as the use of informal channels," Reza Baqir said while addressing the fourth annual banking award.

"The reasons for this may be the comparatively higher cost of sending money [through formal channels] and the questions asked [by banks] from the senders," he added.

The central bank chief had recently told the federal cabinet that overseas Pakistanis were reluctant...