In a telephone conversation on Tuesday, the two officials discussed the ways to expand relations between Tehran and Asuncion.
Ahmadinejad noted that the Islamic Republic is keen to increase the level of bilateral ties in all spheres, particularly in trade and transfer of know-how.
The Paraguayan president, in his turn, congratulated the Iranian government and nation on the occasion of Nowruz, and expressed Asuncion's keenness for broader ties with Iran.
Since taking office in 2005, Ahmadinejad has been expanding Iran's cooperation with many Latin American states, including Paraguay.
The promotion of all-out cooperation with Latin American countries is now among the top priorities of the Islamic Republic's foreign policy.
According to International Monetary Fund statistics, Iran's trade with Latin America has witnessed a considerable growth since 2008.
Brazil is Iran's leading trade partner on the continent, followed by Argentina.
Peru is also a major importer of Iranian products to the region, and the Islamic Republic's trade with Ecuador is dramatically up. Tehran's trade with Venezuela is also on the rise.
Iran has made significant gains in trade with other partners in the region, including Chile, Mexico, Peru and Uruguay.