Regarding policies to mobilise domestic resources for development and improve fiscal conditions, Paraguay has implemented significant measures focusing on tax system modernisation and strategic reforms. The introduction and enforcement of a 2019 law on modernising and simplifying the national tax system has played a crucial role in expanding Paraguay’s tax base and increasing revenue. This reform unified previous taxes, such as the Income Tax on Commercial and Industrial Activities and Services and the Income Tax on Agricultural Activities, while introducing new measures such as extended tax bases, allowance for tax losses carried forward and transfer pricing regulations. These initiatives are pivotal in enhancing fiscal transparency, improving the business climate, and aligning with the goals of the National Development Plan (NDP). The NDP outlines Paraguay's development vision for 2030 and focuses on four strategic axes: i) reducing poverty and promoting social development; ii) achieving inclusive economic growth; and iii) improving Paraguay's global integration; and iv) political-institutional strengthening.
Regarding policies to advance a robust, inclusive, and sustainable financial market, Paraguay has implemented comprehensive strategies. Efforts include initiatives to improve financial literacy, expand internet access and reduce transaction costs. These efforts are critical for achieving full financial inclusion by 2030 under the NDP. Notably, Paraguay launched an Instant Payment System in 2022, enabling real-time transactions and improving efficiency and transparency in the payment system. Legislative initiatives, such as the proposed Financial Inclusion Law, aim to formalise the economy by promoting the widespread adoption of payment methods —primarily electronic— that accurately identify the parties involved and enhance transaction traceability. Likewise, in 2022, the Law on Trust Services for Electronic Transactions came into force, which provides a safe and reliable framework for electronic transactions, promoting greater participation in the formal economy and encouraging innovation in the financial sector. Furthermore, Paraguay has been at the forefront of integrating of Sustainable Development Goals bonds into national regulations, demonstrating its commitment to sustainable financing and economic resilience. This commitment was evidenced by the issuance of a sustainable bond by the Development Finance Agency through the Asunción Stock Exchange in December 2023. These initiatives collectively highlight Paraguay's proactive approach to fostering a resilient financial ecosystem aligned with global sustainability goals.
In terms of regional and international finance and partnerships to catalyse international resources, Paraguay has embarked on strategic collaborations aimed at promoting sustainable economic development and enhancing its role in global markets. These collaborations emphasise integrating sustainable practices such as green financing and the building of resilience against socionatural risks. Key partnerships include ongoing support from the World Bank for infrastructure projects, Inter-American Development Bank investments in energy efficiency and collaborations with the Global Green Growth Institute to foster green investments. Paraguay’s NDP, prioritises sustainable growth, green investments, and social inclusion, reinforcing Paraguay's commitment to fostering economic resilience. In 2024, Paraguay's role as host of the Organisation of American States General Assembly and the Mercosur Summit underscores its commitment to regional co‑operation and economic integration efforts, aimed at strengthening ties with neighbouring countries and advancing in mutual development goals.