Pedro Juan Caballero is a city in Paraguay, located in Amambay Department of which it is the capital. The city lies on the border with the Brazilian city of Ponta Porã in the state of Mato Grosso do Sul and is known as a centre for cheap electronic and consumer goods, and also as a centre for drug smuggling. This city is the highest city in Paraguay at 670 mts (2201 ft) above sea level.The city is named after Pedro Juan Caballero.Route 5 “Gral. Bernardino Caballero” connects the city with Concepción and Asuncion.

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