Pulpwood production potential of eucalyptus, grown on saline and waterlogged lands in Pakistan was studied in consideration to mean annual increment, wood basic density and yield of pulp. The results revealed that about 30.2 million cubic metre of eucalyptus pulpwood can be produced annually from plantations raised on saline and waterlogged lands in Pakistan per year. This supply of pulpwood is sufficient for the sustained production of 1.225, million tonnes/annum of kraft pulp. After meeting the domestic demand, about 0.625 million tonnes/annum, pulp in surplus would be available for export to earn foreign exchange of about 15.112 billion rupees. Additional benefits like land reclamation, employment generation, import substitution and environmental protection will also accrue from afforestation of saline and waterlogged areas with eucalyptus.