I am thinking of migrating to Paraguay.

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First of all, I would recommend that you go back and read all the previous posts on this site for lets say the last few years, as they will answer all your questions you've stated and some you will probably have shortly.   I don't mean read each post, just those with subject lines like "immigrating to Paraguay"  "getting residency in Paraguay", etc… I know this is the "lazy" way to answer your questions, but realistically the answers to how to get residency, citizenship and related topics do not change much for Paraguay so these past answers are still valid today for the most part. 

Some quick overview information for you is that the first step to living in Paraguay as a foreigner is to get your residency, usually a process that takes 6 months to a year to be completed.  You start by getting a temporary visa (good for 90 days) and bringing with you all the documentation needed to process your residency application.  Once you receive your residency you "HAVE TO WAIT 3 YEARS" to be eligible to apply for citizenship.   I mention this as there has been a few cases recently of criminals advertising they can get you Paraguayan citizenship on an expedited basis for many thousands of dollars.  These people are in prison now.   

But the overall process applies to you, your spouse and your kids.   Keep in mind Paraguay does not recognize "dual citizenship" so legally you have to give up another countries citizenship and passports if you become Paraguayan.  Realistically though this requirement is universally ignored as the Paraguayan government doesn't enforce it.   Besides the posts on this site, I would highly recommend you go to any Paraguayan Embassy web site from a country your familiar with.  As you obviously speak/read/write English I would recommend going to the Paraguayan Embassy in Canada's web site.  They lay out the current process on immigration in much detail.  It's not very complicated nor difficult process, just takes some attention to detail and a lot of running around in Asuncion.   And for the record you DO NOT need a lawyer to complete this process.  It is possible to do the process by yourself if you can use passable Spanish, are patient and don't mind running around to numerous government buildings and spending a lot of time waiting in line and being a bit frustrated.  Many people don't want to deal with this so simply hire a lawyer.  Most recently the going rate charged is around $750 - $3,000 a person depending on the lawyer you choose.   

I will tell you that you may have a problem due to your wife's citizenship.  This is due to Paraguay putting a hold on granting residency to passport holders of countries they consider "hotbeds" of terror.  And Pakistan is one of these.   This information came from a lawyer who deals with immigration cases here and I've seen various posts on this site and others commenting on this too.   Of course this policy could change at any time or the countries on the list could change too, so it would be best to deal with a lawyer dealing with immigration to get the most up to date information regarding this.

Good luck on your quest!

Thanks very much majbjb for such a detailed information.I will appreciate if you can suggest me any lawyer ,so that I can discuss my case with him in much better way .