Company: PAM
Filing Date: 2025-04-16
Form Type: 20-F
Source: 0001292814-25-001504
Chunk: 51

Company: Pampa Energy Inc.
Filing Date: 2025-04-16
Form: 20-F
Item: Item 5
Chunk 51
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, in turn, our business, our
financial condition and the result of our operations.

Failure to adequately address
actual and perceived risks of institutional deterioration and corruption may adversely affect Argentina’s economy and financial
condition

A lack of a solid and transparent
institutional framework for contracts with the Argentine Government and its agencies and corruption allegations have affected and continue
to affect Argentina. Argentina ranked 99 of 180 countries in the Transparency International’s 2024 Corruption Perceptions Index.

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As of the date of this annual
report, there are various ongoing investigations into allegations of money laundering and corruption being conducted by the Office of
the Argentine Federal Prosecutor, which have negatively impacted the Argentine economy and political environment. Depending on the results
of these investigations and how long it takes to finalize them, companies involved may be subject to, among other consequences, a decrease
in their credit ratings, having claims filed against them by investors in their equity and debt securities, and may further experience
restrictions on their access to financing through the capital markets, all of which will likely decrease their income. Additionally,
if criminal cases against companies move forward, they may be restricted from rendering services or may face new restrictions due to
their customers’ internal policies and procedures. These adverse effects could restrict these companies’ ability to conduct
their operating activities and to fulfill their financial obligations. Consequently, the number of suppliers available for our operations
may be reduced which could in turn have an adverse effect on our commercial activities and results of operations.

The Argentine Government has announced
several measures aimed at strengthening Argentina’s institutions and reducing corruption. These measures include creating a special
prosecutor’s office in charge of investigations involving national and provincial officials related to illicit enrichment and asset
increases, plea bargains in exchange for cooperation with the judiciary in corruption investigations, greater access to public information,
the seizure of assets from officials prosecuted for corruption, expanded powers for the Anti-Corruption Office, and the enactment of a
new public ethics law, among others. We cannot guarantee that the implementation of these measures will be successful or that, once implemented,
they will achieve the desired result.

We cannot estimate the impact
that the new measures could have on the Argentine economy. Similarly, it is not possible to predict the duration of corruption investigations,
nor which companies might be involved or how far-reaching the effects of these investigations might be, particularly in the energy sector,
or if there will be any other future investigations in this or other industry, which