The film industry in Paraguay has historically suffered from lack of funds, public interest and equipment, as well as the repressive Alfredo Stroessner government of 1954–1989.

Argentine director Lucas Demare chose to film La Sed (1961), an adaptation of Paraguayan author Augusto Roa Bastos's Hijo de hombre, in Argentina because of this.

The exception to this was the 1978 state-funded film Cerro Cora, directed by Guillermo Vera, which promoted the historical and political views of the Stroessner government.

[7] In September 2017, the Film Academy of Paraguay chose its second candidate for the Oscar award, Los buscadores ("Gold Seekers") by Juan Carlos Maneglia and Tana Schémbori, directors of 7 Boxes.

[8] In October 2017, the Senate approved with half sanction the bill of Audiovisual Promotion, with which the National Film Institute of Paraguay could be created.