Final answer:
The city that lies on the Paraguay River, near the confluence with the Pilcamayo River, is Asunción, the capital of Paraguay.
Step-by-step explanation:
The city that lies on the Paraguay River, near its confluence with the Pilcamayo River, is Asunción, the capital and largest city of Paraguay.
Asunción serves as the center of commerce and culture in Paraguay and also is an important port on the Paraguay River, which is essential for transportation and economic activities.
The confluence of the Paraguay and Pilcamayo rivers brings together vital waterways that are significant for the movement of goods and resources within the region.
While Paraguay is landlocked and suffers from a lack of infrastructure, its rivers, including the Paraguay River, play a crucial role in supporting the country's economy and providing electricity through hydroelectric dams.