Abstract: The paper discusses the nature and magnitude of the debt burden in Tanzania and it provides important physical indices of environment degradation that has been caused by indiscriminate exploitation of forestry resources in recent years in order to service the external debts. It recommends that the government should institute comprehensive forest management systems that seek to ensure conservation and harvesting. In addition, it also suggests of the need to build up public awareness through education to appreciate the importance of conservation and sustainable utilization of forest resources.