Ministerio de Economía y Finanzas

At least 197 specialist doctors formally submitted resignations in Paraguay after a five-day strike, as patients report shortages of medicines and supplies; the government attributes rejection of a across-the-board raise to fiscal constraints and is considering measures to fill vacancies, regularize 2,390 contracted workers and include US$760 million for medicines and supplies in the 2027 budget proposal, which has not yet been approved. University lecturers are also threatening mobilization, while Eduardo Nakayama proposes eliminating state-paid private insurance to direct US$100 million to US$120 million annually to public health without shifting pressure to the Social Security Institute (IPS), which is facing its own crisis.

Mercosur held the first round of talks with Vietnam in Buenos Aires on a preferential trade agreement aimed at expanding market access, diversifying exports and fostering investment.

Amid a nationwide doctors’ strike, Paraguay is debating higher taxes on tobacco and other levies to fund health care, while economists and business leaders argue for better public management, less waste and policy predictability to avoid harming investment.

Paraguay’s Executive Branch has decreed a reduction from 1.5% to 1.4% per month in the interest rate for tax installment agreements administered by DNIT, the country’s tax authority, starting September 1, 2026.

The Paraguayan government is negotiating $1.3 billion in loans with CAF, the Inter-American Development Bank, the World Bank and JICA for infrastructure, energy and logistics projects, with $700 million earmarked for the Ministry of Public Works and Communications.

The Supreme Court of Paraguay pays a salary exceeding 22 million guaranis per month to the wife of one of its ministers, who holds the position of director-general, without having a record of her education in the official files, which has drawn strong criticism from legal experts who call the appointment irregular and ethically questionable.

While economist Sergio Sapena advocates raising Paraguay's debt to 70% of GDP to finance development, the Santiago Peña government has already issued $5.4 billion in bonds, and experts warn of the risks of accelerated indebtedness amid fiscal deficits.

Paraguay's Ministry of Economy and Finance made compensation payments to 46 victims of the Stroessner dictatorship, while 18 other beneficiaries had payments suspended due to pending documents.

Ueno Bank expanded its public deposits in Paraguay to US$862 million in July, capturing US$52 million in one month and sparking debate about limits for state funds in financial institutions, while denying irregularities and rebutting criticism about its investments and intangible assets.

Paraguay launched a national financial inclusion strategy for 2026-2031, which aims to promote responsible use of financial services and combat overindebtedness, following rapid growth in consumer credit in the country.

The Paraguayan government is negotiating the assignment of $400 million to pay part of its roughly $1 billion debt to pharmaceutical suppliers, with $320 million already available for negotiation.

President Santiago Peña completes three years in government in Paraguay with economic growth, attainment of investment-grade status, and an increase in foreign investment, but faces a growing fiscal deficit, rising public debt, and structural challenges in areas such as tax collection, pension reforms, and institutional fragility.

Paraguay recorded a 40% increase in foreign direct investment in 2025, driven by hydropower and telecommunications, while the government launches strategies like the 'Industrial Revolution' to attract more capital and double GDP with sectoral reforms.

Paraguay's new SIARA system has already enabled thousands of people and legal structures and processed over 87,000 requests since its implementation in January.

The Paraguayan government projects a fiscal deficit of 3.9% of GDP and new debt of $600 million for 2027, a plan criticized by experts and the president of Congress as fiscally irresponsible and unsustainable without spending cuts and reforms.

The Paraguayan Senate postponed the vote on the fuel transparency law and the insurance bill to form working groups, following objections from regulatory bodies and lack of consensus in committees.

Paraguay's state electricity utility ANDE has kept two strategic projects stalled for years: the sale of energy from the Acaray plant to Brazil and the issuance of its own bonds, both without an official completion schedule.

DNIT and Asoban signed an agreement to create a secure platform for exchanging tax and banking data starting in 2027, while the tax authority also reviews special regimes and regulates cryptocurrencies to increase revenue.

Paraguay's Ministry of Economy will begin a comprehensive review of the public budget and seek a loan to settle accumulated debts with Health Ministry suppliers.

Former Finance Ministers warn that Paraguay's tax capacity has reached its limit and that the growing fiscal deficit may be a structural problem, advocating for greater efficiency in public spending.

The Peña government is preparing a temporary increase in the deficit cap while paying US$1.27 billion in quantified legacy debts and planning a return to the 1.5% of GDP limit in 2028.

President Santiago Peña and Economy Minister Óscar Lovera met with former ministers, who warned that recognizing a $280 million hidden debt with health sector suppliers will push the fiscal deficit close to 4% of GDP, missing the 1.5% target set for 2028.

Private fuel distributors in Paraguay have increased prices by up to G. 800 per liter for diesel and between G. 500 and G. 600 for gasoline, citing the impossibility of maintaining previous prices in the face of high international oil market costs.

Paraguay has assumed the presidency of the Network of National Public Investment Systems of Latin America and the Caribbean (Red SNIP) for the first time, for the 2026-2028 period, and has presented its progress in incorporating climate criteria and evolving towards a more strategic National Public Investment System.