Abstract

Reducing the cost of remittances to 3 percent could have long-term socio-economic implications for developing countries, including Pakistan, that is one of the targets in with in Sustainable development goals (G10). Key factor of using informal channel for sending remittances to home is the cost of remittances paid by remitters. Thisresearch examines that cost of sending remittances can be reduced when larger amount are transferred to developing counties, it also proves that larger amount of remittances have less transaction cost as compared to less amount transferred. Using World Bank data on transmission rates, the average cost of transmission for major corridors is estimated for the period between the second quarter of 2016 and the fourth quarter of 2021. Similarly, the cost per main corridor for sending remittances, source of money transfers (Banks and Money Transferring operators (MTO’s)), amount of money and means of transfer through bank account, money cash, mobile money and debit card. Sludge helps to eliminate different steps involved in processes of sending remittances. overall there is need for e-branches in Pakistan as e-braches help out getting 65% of the services given by Bank branches. That is need to bear rural areas so that it offers customers convenience and feasibility to transit over 65% of bank activities. Moreover, findings suggest policies suggest that PRI should be involved in making policies and there is a need to focus on decrease in remittances cost through formal channels