Santiago Peña

Paraguayan specialist doctors withdrew their resignations and suspended participation in the September 21 and 22 strike after reaching an agreement with the Ministry of Health, which provides for negotiations on differentiated salaries for high-complexity fields, still subject to budgetary and legislative approval.

Paraguay’s Senate approved requests for information from the Central Bank of Paraguay about Ueno Bank’s operations and expansion, amid questions about public deposits, possible conflicts of interest, and political rivalries involving the institution and Banco Basa.

A teachers’ strike scheduled for September 17 and 18 in Paraguay challenges the 2027 budget bill, which excludes agreed raises and demands, while senators Blanca Ovelar and Celeste Amarilla disagree over the causes of the education crisis, the results of the 2025 PISA assessment given to 6,507 students, the Ñe’ẽry program, which received US$12 million in 2023, and criticism of teacher training and meritocracy; Amarilla also fears a return of banking crises and mentions Banco Atlas and Ueno, a Paraguayan digital bank.

Santiago Peña said there is no break with Horacio Cartes, attributed criticism to the municipal elections, defended clarifications over a request for information from the Central Bank involving Ueno Bank, and called for continued dialogue with doctors threatening a strike on September 21 and 22.

According to the organizers, the 3rd Taiwan–Paraguay Technology Forum, scheduled for September 11 and 12 at the Central Bank of Paraguay in Asunción, will bring together experts to discuss applications of artificial intelligence in areas including industry, agriculture, health, energy, logistics, finance, cybersecurity and digital government, with free admission upon prior registration.

Sitrande will step up protests against plans to create a Ministry of Energy, Mining and Hydrocarbons and an Energy Regulatory Authority, demanding guarantees from Santiago Peña’s government as negotiations over Itaipú’s 2027 tariff move forward.

Paraguay’s Chamber of Deputies will again review a bill that could allow different financial products from the same institution to be counted separately, while IPS investments in Ueno Bank exceeded the legal limit described in the sources.

Rumors of possible impeachment proceedings against Supreme Court justices are dividing Paraguay’s Colorado Party, although no formal proposal exists. Senator Derlis Maidana said Santiago Peña denied any government initiative, while Mario Varela acknowledged discussions that could involve Liberal senators, Juan Bartolomé Ramírez and a possible political move after the municipal elections.

The phone of Yecika Bracho, the holder of the line linked to Despierta Paraguay, is being examined after an agreement with Christian Chena in an investigation into an alleged network of digital attacks that may have used accounts and SIM cards registered in other people’s names, while possible links to companies and public officials remain judicially unproven.

Silvio Pettirossi International Airport will continue operating for at least four or five years, with expansion work under way as the government weighs a new terminal costing more than US$320 million and Latam Airlines expands flights to Lima, São Paulo and Montevideo.

Estefanía Laterza de los Ríos has taken office as Paraguay’s ambassador to the United States with an initial two-year plan covering political, economic, trade, security, science, education, public diplomacy and community cooperation.

Paraguay plans to expand organic farming, which covers 160,000 hectares, includes 7,500 certified producers and exported about $40 million in the past year, according to figures presented by President Santiago Peña. The strategy involves investment, added value and regional cooperation.

Latam will launch a direct route between Asunción and Montevideo in the first quarter of 2027, with five weekly flights, and increase weekly departures on existing routes from Paraguay from 26 to 32 by the end of 2026. With the new route, the total will reach 37 weekly frequencies.

Paraguay will promote food and wine companies on October 19, 2026, at Castello di Solfagnano in Italy’s Umbria region, in a planned program of meetings, tastings and visits aimed at connecting producers with potential European buyers, investors and partners.

Santiago Peña reaffirmed that he will not raise taxes as the government reviews tax exemptions estimated at about US$1 billion and faces demands from doctors for higher pay and protests over health services.

The Paraguayan government will keep tax rates unchanged through 2028 but will review exemptions and regimes such as maquila, estimated at up to US$1 billion, while lawmakers debate new taxes and spending cuts to finance public priorities.

Senator Líder Amarilla criticized Santiago Peña’s government for prioritizing major sporting events and ironically suggested a world horse race, citing problems in hospitals, public safety and highways.

Paraguay’s 2027 General National Budget bill provides for spending of G. 166.322 trillion, an 11.2% increase and a deficit of up to 3.9% of GDP, but excludes the pay increase demanded by striking doctors, while five babies were transferred after a flea infestation in a neonatal unit in Ciudad del Este.

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.

Senator Gustavo Leite proposed reducing public spending by up to US$400 million a year, including an incentivized voluntary retirement program for up to 100,000 public employees, merging redundant agencies and freezing hiring. The figures and effects are Leite’s projections, and implementation still depends on financing, executive decisions and negotiations.

Sami Pajari won Rally del Paraguay 2026 for his third consecutive victory of the WRC season. Diego Domínguez Bejarano won WRC2 at home, while Santiago Peña said he would work to bring more competitions to Paraguay; Pedro Alliana presented Andrea Lafarja as the first Paraguayan woman to reach a World Rally Championship podium.

PLRA deputies held a service day in Córdoba for Paraguayans and proposed integrating the identity and voter-registration systems after the local consulate closed in 2024 for budgetary reasons.

Paraguay and Taiwan are planning a binational artificial intelligence data center in Chaco’i, based on a model similar to Itaipu and presented by the Paraguayan government as intended to become the world’s largest AI center. The project’s final capacity is planned at up to 1,000 MW, with an estimated initial investment of US$200 million to US$300 million.

The Senate is reviewing an agreement that could allow Paraguayans and Qataris to enter, transit through and stay in each other’s territory for up to 90 days without visas or fees, subject to approval by both houses of Congress, as the government expands its economic and trade agenda with the business sector.