Company: PAM
Filing Date: 2025-04-16
Form Type: 20-F
Source: 0001292814-25-001504
Chunk: 50

Company: Pampa Energy Inc.
Filing Date: 2025-04-16
Form: 20-F
Item: Item 5
Chunk 50
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 affect in other ways our business and our operational results, or cause the market value of our ADSs and our common shares to decline.

Argentine public expenditure may generate negative
consequences for the Argentine economy

Public expenditure has significantly
increased throughout the last decades in Argentina. In the past, the Argentine Government adopted several measures to finance its high
public expenditure, including, among others, using the resources of the Central Bank and the ANSES to fund its financial needs, and implementing
an expansionary monetary policy that increased inflation levels.

The current administration has
indicated its intention to reduce the fiscal deficit by reducing public spending. Measures taken to achieve this include (i) devaluing
the Argentine peso by 50% against the U. S. dollar; (ii) suspending public works; (iii) reducing subsidies for energy and transportation
services; (iv) halting official advertising; and (v) reducing the number of ministries and secretariats.

As a result of the measures taken
by the current administration, in December 2024, primary expenditure in the National Public Sector fell by 27% year-on-year in real terms.
Moreover, according to statistical information published by the Ministry of Economy, as of December 2024, Argentina achieved a primary
surplus of Ps. 10,405,810 million, thus closing 2024 with a surplus of 1.8% of GDP, registering, in addition, a financial surplus for
the first time since 2010.

Primary surplus may be sustained
and even increased in the future if public expenditure is further reduced at a faster rate than the Argentine Government’s revenues.
Despite the foregoing, we cannot be certain that the fiscal surplus generated by President Milei’s spending cuts will be sustained
or that spending cuts will not lead to political and social upheaval. Opposition to the current administration’s austerity measures
could result in a return to 2023 levels of public spending.

A
new fiscal deficit may generate further complications for the Argentine Government’s ability to access the financial markets in
the long term, and, at the same time, limit even more Argentine corporations’ access to those markets. See“ Argentina’s
ability to obtain financing from international markets could be limited, which may impair its ability to implement reforms and foster
economic growth and, consequently, affect our business, results of our operations and growth prospects.”

We cannot predict how the measures
that the Argentine Government has applied and may continue to apply will impact the Argentine economy and