Paraguay generates more than 99% of its electricity from hydroelectric sources. Itaipú, Yacyretá, and Acaray form an energy mix that is the envy of many due to its clean energy and low cost. But this strength also represents a vulnerability: the country’s dependence on the Paraná River and lack of diversification expose it to climate-related risks, while the distribution network is not keeping pace with demand.

Public debt reached USD 18.33 billion (40.7% of GDP, which stands at USD 45 billion), of which USD 12.47 billion is external debt (27.7% of GDP). A pension fund system would help mobilize domestic savings and reduce reliance on international loans. Paraguay’s formal workforce totals 1.18 million workers, with an average monthly wage of USD 413. If each worker contributed 10% (USD 41.3), this would generate USD 584.9 million per year.

In Paraguay’s economic history, agreements with the International Monetary Fund (IMF) have served as beacons amid financial storms: necessary guides, yet not without their challenges and controversies.

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?