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The Paper, "Shadow Pricing and Macroeconomic Analysis: Some lliustrations from Pakistan ,,1 by Lyn Squire, I. M. D. little and M. Durdag (henceforth simply SLD) is an important contribution for two reasons. Firstly, it represents the first major step by the World Bank to provide a comprehensive set of shadow pri~es for Pakistan using a.methodology [7] that while not as yet officially adopted by the Bank seems likely to have a pervasiveinfluence on all future attempts to defme and estimate shadow prices in the Bank's economic work. The Bank's methodology is a lineal descendant of the famous Project Appraisaland Planningfor the Developing Countries by I. M. D. tittle and J. Mirrlees [6]. Thus, in the SLDpaper, two of the leading "shapers" of shadow price technology take Pakistan as one of the first test casesfor the practical application of their theories.

Calculating Shadow Prices in Pakistan (Reflections on the Paper by Squire, Little and Durdag)