Weekly briefing - Jul 12, 2026 - Jul 19, 2026
Paraguay: Electoral, Fiscal, and Energy
Week of municipal alliances, pension deficit, and rural alert on biodiesel. Investigations into fake diplomas and security operations.
The week in Paraguay was dominated by the start of the municipal electoral campaign, with the PLRA cutting transfers to allies. Meanwhile, the Fiscal Pension Fund deficit reached $216 million in the semester, and producers sounded the alarm about the risks of increased biodiesel for the harvest.
Politics
President Santiago Peña publicly supported Vice President Pedro Alliana for 2028 during an inspection of Yacyretá works. Meanwhile, the PLRA announced it will cut financial transfers to third-force allies in municipal elections, concentrating resources on liberal candidates.
- Peña backs Alliana for 2028 as PLRA cuts off funds to allies in municipal electionsEl Nacional, La Nacion, Ultima Hora
- Former Mayor of Tomás Romero Pereira reports G. 1.1 billion loss to Comptroller General's OfficeUltima Hora
- Colorado Senator admits to serious failures at the IPS and avoids talking about Ueno BankABC Color
Economy
The Fiscal Pension Fund deficit reached $216 million in the first semester, financed by the National Treasury. In contrast, maquila exports grew 25%, and the Paraguay-Brazil Chamber celebrated 25 years with bilateral trade quadrupling since its foundation.
- The Fiscal Pension Fund's deficit reached US$216 million in the first half of 2026ABC Color
- Paraguay's maquila exports grow 25% and generate more jobs in the first half of the yearABC Color
- Paraguay-Brazil Chamber of Commerce Celebrates 25 Years with Bilateral Trade Quadrupled Since Its FoundingLa Nacion
Agriculture
Rural producers warn that the mandatory increase of biodiesel in common diesel threatens to cause machinery breakdowns and significant overcosts, potentially impacting the harvest. Watermelon production, on the other hand, exceeded 65,000 tons in 2023.
Infrastructure
The physical union of the Bioceanic Corridor bridge over the Paraguay River was completed, connecting Carmelo Peralta to Porto Murtinho. In Asunción, a candidate denounced alleged tax diversions from major events in the capital.
- The physical connection of the Bioceanic Corridor bridge between Paraguay and Brazil is completeABC Color, La Nacion, El Nacional
- Candidate Accuses Asunción Municipality of Diverting Taxes from ConcertsUltima Hora
Security
The Senate demanded that Interior Minister Enrique Riera clarify the death of a young man in a police operation. Investigations into fake diplomas reached public servants and extended to Brazil, while the Senad dismantled drug trafficking camps.
- Senate Demands Minister Riera Clarify Death of Young Man in Police OperationABC Color
- Investigation into Fake Diplomas in Paraguay Reaches Public Servants and Extends to BrazilABC Color, El Nacional
- SENAD, Paraguay's National Anti-Drug Secretariat, arrests former soccer player for cocaine trafficking and destroys 29 tons of marijuana in ParaguayLa Nacion, 1000 Noticias, Ultima Hora
Society
Paraguayan driver Joshua Duerksen won the Formula 2 sprint race at Spa-Francorchamps. The 2022 Census revealed that Asunción is the city losing the most inhabitants to the Central Department. A tragedy claimed three generations of a Paraguayan family in an accident in Brazil.
- Joshua Duerksen wins F2 sprint race at Spa-Francorchamps and climbs the championship standings1000 Noticias, Unicanal, ABC Color
- Census shows Asunción is the city losing the most inhabitants in ParaguayABC Color
- Three generations of Paraguayan dancers die in bus accident in Santa CatarinaABC Color, Ultima Hora
We will follow the electoral and economic developments shaping the Paraguayan scenario.