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?

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.