Regarding policies for production transformation, Paraguay has adopted a multisectoral approach with the Plan Nacional de Desarrollo Paraguay 2030. It consists of a strategic roadmap that articulates four fundamental pillars: poverty reduction, inclusive growth, global integration and institutional strengthening, with 16 specific objectives and four cross-cutting lines. Implemented by the Ministry of Economy and Finance (MEF), the plan guides the actions of the state, civil society, the private sector and the legislative and judicial branches to align their efforts. At the same time, the strategy Impulsando el Crecimiento de Paraguay, launched in 2025, proposes to double the size of the economy in a decade, increase the country's GDP by 7-10% and promote the creation of 500 000 jobs. The Política Energética de la República del Paraguay al 2050 seeks to consolidate the country as a regional hub for energy integration. A key sectoral instrument is the Marco de Políticas del Sector Agropecuario 2020-2030, which promotes market competitiveness, equitable land tenure and enhanced public services for agriculture, aligning family farming and agribusiness with national development priorities. These initiatives mobilise institutions such as ministries, banks, national services and private-sector actors to boost the productivity of existing products, diversify sophisticated goods and promote new industries, thereby fostering competitiveness and innovation.
Regarding public financing mechanisms for production transformation, Paraguay relies primarily on tax incentives and credit lines channelled through national development banks. Legal regimes have been implemented to offer tax exemptions and reductions linked to company income and expenses, to promote productive investment, job creation and industrial competitiveness. Notable examples are the recently updated Ley 60/1990, which promotes domestic and foreign investment, and Ley 1064/1997, focused on transformation for export. Direct financing through the Development Finance Agency and the national development bank Banco Nacional de Fomento also provides medium- and long-term resources for strategic sectors, such as housing; micro, small and medium-sized enterprises; agribusiness; and manufacturing.
In terms of international partnerships for production transformation, international alliances include the Programa País con la OCDE, which establishes technical assessments and standards to harmonise investment policy with Paraguay’s national priorities. At the operational level, the Investment Council and the National Council of Export Maquiladora Industries review, approve, or reject investment projects and programmes seeking tax benefits under Ley 60/1990 and Ley 1064/1997. Their decisions follow eligibility criteria and alignment with national policy, having approved projects worth over USD 680 million between 2024 and 2025. The Ministry of Industry and Trade, the MEF and the Investment and Export Network co‑ordinate to channel foreign investment into strategic sectors such as housing, energy and forestry, with support from Inter-American Development Bank Invest and the Taiwan International Co‑operation and Development Fund. In addition, the National Trade Facilitation Committee and the Programa de Operador Económico Autorizado have reduced logistics times and costs through digital platforms and mutual recognition agreements with countries in Latin America, the Caribbean and MERCOSUR.