Company: PAM
Filing Date: 2025-04-16
Form Type: 20-F
Source: 0001292814-25-001504
Chunk: 47

Company: Pampa Energy Inc.
Filing Date: 2025-04-16
Form: 20-F
Item: Item 5
Chunk 47
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 lowering inflation rate as in 2024. As of to the date of this report, the Argentine Government seems to have stabilized the value of
the Argentine Peso through fiscal and monetary policies having a positive impact on lowering inflation rates. If such policies cannot
be maintained, or in the future are no longer effective, an increase in inflation rates could be expected.

A high inflation rate affects
Argentina’s foreign competitiveness by diluting the effects of the Peso depreciation, negatively impacting employment and the level
of economic activity and undermining confidence in Argentina’s banking system, which may further limit the availability of domestic
and international credit to businesses. In turn, a portion of the Argentine debt continues to be adjusted by the “ CER” (a
Reference Stabilization Coefficient), a currency index that is strongly correlated with inflation. Therefore, any significant increase
in inflation would drive an increase in the Argentine external debt, either in whole or in part, as appropriate, and consequently in Argentina’s
financial obligations, which could exacerbate the stress on the Argentine economy. An inflationary environment could undermine our operational
results, adversely affect our ability to finance the working capital needs of our businesses on favorable terms and our operational results
and cause the market value of our ADSs and our common shares to decline.

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There is uncertainty regarding
the effectiveness of the policies implemented by the Argentine Government to control, maintain and further reduce inflation and the potential
impact of those policies in the future. We cannot assure that the inflation rate will not increase in the future or that measures taken
or to be taken by the Argentine Government to control inflation will be effective in the long term. High inflation may adversely affect
the Argentine economy, which in turn may have a negative impact in our financial condition and operational results.

Argentina’s ability
to obtain financing from international markets could be limited, which may impair its ability to implement reforms and foster economic
growth

Argentina faces difficulties in
accessing capital markets due to its history of debt restructuring and creditor litigation. Since the 2001 crisis, the country has undergone
multiple restructurings, including debt swaps in 2005, 2010 and 2020, as well as agreements with the IMF in 2018 and 2022. These processes
have allowed refinancing commitments but have affected investor’ confidence and macroeconomic stability.

The country has resorted to international
organizations such as the IMF and the Paris Club to obtain financing, with successive revisions and