Paraguayan President Santiago Peña has announced plans to expand the country’s successful maquila regime to cover digital services, a step expected to give a strong push to the nation’s business process outsourcing and knowledge process outsourcing sectors. Originally designed to support manufacturing, the maquila program has become a key growth driver. Building on this success, the government now aims to extend the framework to the services industry. At present, only four service firms operate under the maquila system, which offers major tax advantages — most notably a 1% income tax on revenues. The Chamber projects annual growth of up to 15%, strengthening Paraguay’s position as a rising outsourcing hub in Latin America.