The National Commission on Agriculture (1988) underlined shortage of fuelwood in the country and projected a much bigger gap between demand and supply by turn of the century. Several other studies have made similar assertions about fuelwood situation in Pakistan (l,2,3,5). These assessments are mostly based on physical models of supply and demand. These models estimate future demand on the basis of projected population size and per capita needs, and compare it with the production potential of the existing resources. While relevance of these models can hardly be held in doubt, it is imperative that the economic indicators of scarcity may also be examined. This would provide a better understanding of the situation and help in making better decisions. Some of these indicators are discussed.