Mercosur has approved an agreement that will allow for the mutual recognition of digital identity between Paraguay, Argentina, Brazil, and Uruguay. The agreement, the result of two years of negotiations, will facilitate the completion of online public procedures between member countries without citizens needing to travel. The Vice Minister of Information and Communication Technologies (MITIC), Klaus Pistilli, explained that the system does not involve sharing databases between countries, only the confirmation of identity authenticity by the competent authority. Currently, more than 1.5 million Paraguayans already have an electronic ID, which provides access to more than 1,100 procedures on the Paraguay Portal.
In the tax arena, the National Directorate of Tax Revenue (DNIT) announced plans to implement pre-filled VAT returns for medium and large taxpayers. The system will use data from electronic invoices to simplify tax compliance and reduce errors. The director of the institution, Óscar Orué, highlighted that this is one of the next steps in the digital transformation of the tax administration, funded by a $30 million loan from the Inter-American Development Bank (IDB). The tool will be implemented gradually, although a launch date has not yet been set.
In the capital, the Municipal Board of Asunción approved the 2025 financial statement with 13 votes in favor and 10 against. The municipality's Legal Director, Jorge Sabaté, stated that the approval came after responding to observations made by councilors and that technical control now falls to the Comptroller General of the Republic. However, opposition councilman Álvaro Grau strongly criticized the decision, calling it a "whitewash" of the administration of former mayor Óscar "Nenecho" Rodríguez, who faces several corruption charges. Grau said the approval turns the Municipal Board, which should protect the city's interests, into a "wolf for Asunción."
Separately, Mayor Luis Bello ordered an intervention at the city's Public Works Directorate following allegations of misappropriation of funds. The accusations, made by councilman Pablo Callizo, include the use of municipal asphalt and machinery for work on private properties. Employees at the asphalt plant have gone on strike in protest, demanding changes in leadership. Chief of Staff Máximo Medina confirmed the intervention to investigate the allegations.
On the political front, the period for electoral campaigning for the October 4 municipal elections has officially begun. The campaign, which will run until October 1, will be governed by the new Electoral Code, which unified the deadlines for campaign advertising in public spaces and media. In these elections, 263 districts across the country will choose their mayors and councilors for the 2026-2031 term.
On the international front, the Binational Entity Yacyretá (EBY) is negotiating a loan of approximately $300 million to accelerate work on the Aña Cuá hydroelectric project. Administrative advisor Michel Flores reported that President Santiago Peña will visit the construction area this Friday to check on the progress. The first of the three turbines is expected to begin operation by the end of May 2028, increasing Yacyretá's power generation capacity by 10%.
In social protection matters, the universal pension for the elderly has been expanded and now also benefits foreigners with permanent residence in Paraguay. According to the law, foreigners can access the benefit if they can prove at least 30 years of permanent residence in the country, in addition to meeting other requirements, such as not owning more than 30 head of cattle and not being an active contributor to the IPS or the DNIT.
President Santiago Peña awarded the Order of Merit of the Armed Forces, in the rank of Grand Cross, to former President Juan Carlos Wasmosy, Vice Admiral (Ret.) Eduardo González Petit, and Army General (Ret.) Silvio Rafael Noguera. Peña highlighted the historical role of the Armed Forces in consolidating Paraguayan democracy. González Petit was one of the "carapintadas" who commanded the coup that overthrew the dictatorship of Alfredo Stroessner in 1989.
In an operation against alleged irregular courses, the Public Ministry and the Ministry of Education and Sciences (MEC) conducted a search of the Crowne Plaza hotel in Asunción. The action, led by prosecutor Aldo Cantero, targeted the Inter-American Institute of Social Sciences (ISICS), suspected of offering postgraduate programs, mainly to Brazilian students, without proper legal authorization in Paraguay.
