MercoPress. South Atlantic News Agency

Paraguayan Gov't seeks to modernize State

These measures are crucial for Paraguay's medium and long-term structural development, Peña argued

The Paraguayan Government of President Santiago Peña has submitted an ambitious bill before Congress to reshuffle the State. Peña hailed this initiative as a “historic milestone.”

The 10-measure program seeks to make land transport safer by updating its regulations to enhance service quality and sustainability. It also plans to merge the Secretariat for Repatriates into the Foreign Ministry of Foreign Affairs to boost efficiency and reduce costs, creating a new Vice Ministry.

It also provides for the creation of the Ministry of Industry, Trade, Tourism, Mines, and Energy to centralize and coordinate policies, simplify procedures, and prioritize strategic sectors. In addition, it replaces the current Law 60/90 with updated criteria to maximize employment and innovation from investments.

The initiative also aims to strengthen the Securities market with clearer rules and enhanced investor protection, aligning with international standards.

The package would also repeal a rule increasing airfares through mandatory payments to travel agencies, in a move to foster competition, open new routes, and reduce costs for travelers.

The Maquila Regime (a special export-oriented production system that allows foreign companies to operate in the country under highly favorable tax and customs conditions) will be updated to include services and digital processes, improving competitiveness and attracting investment.

The Government also wants to promote domestic production and assembly of electrical, electronic, and digital equipment through tax benefits and favorable commercial conditions.

Additionally, Peña wants to make technical adjustments to improve legal certainty and facilitate investment in clean energy, reinforcing Paraguay's leadership in the sector.

The intended Arbitration Law Reform modernizes the national arbitration system to incorporate international principles, validate electronic agreements, and introduce new procedural guarantees.

The head of State underlined that these measures were the result of collaborative efforts and are crucial for Paraguay's medium and long-term structural development.

Separately, Representative Rubén Rubín and Congress Speaker Basilio Núñez on Friday introduced a bill to amend the Penal Code, increasing the maximum prison sentence to 90 years for homicides and serious crimes. For sentences of 50 years or more, the term “reviewable life imprisonment” would apply, it was also explained.

In case of child sexual abuse, the word “up to” would be removed from existing penalties, ensuring the harshest possible sentences are imposed.

While the bill does not address the age of criminal accountability, Rubín noted that this would be considered in future bills.