What to expect on Paraguay’s regulatory front with Peña in charge

Paraguay’s regulatory framework is expected to remain largely the same once Santiago Peña (pictured) assumes as president on August 15. 

“We have a lot of confidence that he will be able to handle the tax issue very well, since he’s an economist and knows the issues the country faces,” Fabiola Bordón, CEO of Montt Consultores Paraguay, said in response to a question from BNamericas during a business opportunities-focused webinar.

She added that she also expects Paraguay’s private investment framework to stay intact under Peña. 

Bordón has praised the country’s PPP law and its industrial development law, which offers tax incentives to investors coming to Paraguay, as some of its main attractions for the private sector.

Peña has said his main priorities will be accelerating economic growth, improving public spending efficiency, as well as reducing the fiscal deficit without increasing taxes.

“There’s a strong conviction to give all guarantees to the private sector,” the president-elect said at a forum held this week by local business association Club de Ejecutivos. He also said that the Paraguayan economy had underperformed during the government of President Mario Abdo. 

Some members of the transition team have criticized the outgoing administration for its strong infrastructure spending although the current authorities claim there are no new tenders planned for this year due to fiscal limitations. 

The public works ministry (MOPC) has stated that since Abdo took office in 2018, the government has completed works on 3,967km of newly paved roads. This surpasses the combined total by all previous post-dictatorship governments (3,904km between 1989 and 2018), state-run news agency IP reported. 

The works have been executed using PPPs, public investment, and multilateral financing.

Some of the projects that will be taken over by Peña’s administration can be seen here.