In 2019 and 2020, Paraguay faced a devastating combination of external and internal shocks that hit its economy like a hurricane: the 2019 drought and the COVID-19 pandemic in 2020. These events, occurring in quick succession, destabilized public finances, tested the country’s fiscal resilience, and exposed structural vulnerabilities in its economic system.

Each installment will address a key aspect of the topic at hand, ranging from today’s opening column through *The Perfect Storm*, *The 2019 Drought and the 2020 Pandemic*, *The Pact with the IMF*, *The Resurgence of Revenues by 2024*, *The Shadow of the Fiscal Balance*, *The Burden of Rigid Expenditures*, Public Investment Under Scrutiny, The Role of the Private Sector, Political Challenges, The International Perspective, The Dream of Zero Deficit, and finally, the last installment of this saga’s Legacy, with the aim of answering the central question: Can Paraguay align its spending with its revenue to build a solid financial future?

As a nation, we face the challenge of modernizing our electricity sector to maximize the benefits of our energy potential. The deregulation of the electricity market—which involves shifting from a centralized state-run model to a competitive one with private participation—could be a crucial step toward improving efficiency, attracting investment, and meeting growing demand. However, this transition is not straightforward and requires meticulous planning.

Paraguay, blessed with one of the cleanest electricity grids in the world, faces a crucial dilemma: how to modernize its electricity sector to meet demand that is growing at a breakneck pace—18.4% in 2024 alone, according to ANDE—without sacrificing its energy sovereignty or driving up the cost of a resource that is a source of national pride.

The impact on public debt reached USD 18.33 billion (40.7% of GDP, USD 45 billion), with external debt amounting to USD 12.47 billion (27.7% of GDP). A pension fund system could mobilize domestic savings, reducing reliance on external borrowing. Paraguay’s formal workforce comprises 1.18 million workers, with an average monthly wage of USD 413. A 10% contribution (USD 41.3 per worker) would generate USD 584.9 million annually (1.18 million × USD 41.3 × 12).