Taking office at age 44 after winning the April 2023 presidential election with more than 43% of the vote, Peña has navigated a complex political landscape marked by the dominance of the historic Partido Colorado and the shadow of corruption allegations involving his political mentor, former president Horacio Cartes. Despite these challenges, Peña’s technocratic background and economic expertise have guided Paraguay through notable progress in economic stability, foreign relations, and social welfare initiatives.
A salient economic breakthrough under Peña’s presidency was Paraguay securing its first-ever investment-grade credit rating in July 2024 when Moody’s upgraded the country’s rating from Ba1 to Baa3 with a stable outlook. This achievement reflects a concerted effort to reduce the fiscal deficit to meet legal thresholds and presents Paraguay as a reliable destination for international investment. Complementing this financial credibility, Paraguay expanded its export markets by opening 63 new destinations between mid-2024 and mid-2025 and recently shipped its inaugural cargo of Paraguayan beef to the United States, highlighting enhanced trade diversification efforts.
Peña’s landmark agreement to revise the Itaipú hydroelectric treaty with Brazil secured Paraguay higher compensation for the shared power generation, marking a historic diplomatic and economic accomplishment for the country’s energy sector. In parallel, the government emphasized domestic energy affordability by reducing fuel and gas prices, supporting the local economy.
On the governance front, the administration implemented a series of comprehensive reforms, including the creation of the Superintendence of Pensions and the overhaul of public service regulations to strengthen transparency and efficiency. The launch of a unified national registry and the introduction of systems for instant payments and carbon credit regulation indicate a drive to modernize Paraguay’s institutional infrastructure. Future legislative initiatives aim to reform arbitration laws, promote renewable energy beyond hydraulics, and enhance the public transportation system in metropolitan areas.
Progress in social policy stands out with the expansion of the “Hambre Cero” (Zero Hunger) program from 90 to all 263 districts, providing meals to over one million schoolchildren nationwide. The Che Róga Porã 2.0 housing initiative extends affordable credit access for home construction and improvements, while the Tekoporã Mbarete program has increased social welfare disbursements by 25%, transitioning from bimonthly to monthly payments. Moreover, the government reported over 14,000 new houses under construction and more than 7,000 subsidies granted, aiming to address longstanding housing deficits.
Security measures have seen historic investment, including tripling motorized patrol units, distributing 500 new police vehicles nationwide, and acquiring advanced aircraft and radar technology to combat organized crime, which remains a priority amid ongoing public concerns. Efforts to tackle micro-trafficking have resulted in the destruction of hundreds of drug hotspots and numerous arrests.
Peña’s administration also put special focus on improving care for vulnerable populations by expanding pension payments to over 320,000 seniors and instituting programs to ensure children in state care find family placements, underscoring commitments to social inclusion.
Internationally, Peña elevated Paraguay’s profile through active diplomacy, assuming the presidency pro tempore of the Mercosur bloc in late 2023 and the Forum for the Progress of South America. His government has sustained strong diplomatic ties with Taiwan and pursued regional integration without ideological bias, aspiring to position Paraguay as a pivotal economic and political actor in Latin America.
Looking ahead, the administration faces challenges including reforming the financially strained public pension system—particularly for security forces and educators—modernizing metropolitan transport infrastructure, and fostering job creation with a goal of generating 500,000 formal employment opportunities within the presidential term. Additionally, diversifying Paraguay’s export economy and further strengthening public security remain critical objectives.
Santiago Peña’s blend of technocratic governance and social reform efforts continues to define his presidency, reflecting an ambition to reconcile economic progress with equitable development in one of South America’s most politically entrenched nations.
—
Technology
This article was curated and published as part of our South American energy market coverage.
