Company: PAM
Filing Date: 2025-04-16
Form Type: 20-F
Source: 0001292814-25-001504
Chunk: 42

Company: Pampa Energy Inc.
Filing Date: 2025-04-16
Form: 20-F
Item: Item 5
Chunk 42
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 or operational results, or cause the market value of our ADSs and common shares to decline

Our business, operational
results and financial condition depend on economic and political conditions in Argentina, which remain vulnerable

Most of our revenues are earned
in Argentina and most of our operations, facilities and customers are located in Argentina. Our financial condition and operational results
depend to a significant extent on macroeconomic, regulatory, political and financial conditions prevailing in Argentina.

The Argentine economy has experienced
significant volatility in recent decades, characterized by periods of low or negative growth, high levels of inflation and currency devaluation.
Sustainable economic growth in Argentina depends on a variety of factors including the international demand for Argentine exports, the
stability and competitiveness of the Peso against foreign currencies, confidence among consumers and foreign and domestic investors, a
stable rate of inflation, national employment levels and the circumstances of Argentina’s regional trade partners.

After three consecutive quarter-on-quarter
declines, Argentina’s GDP grew 3.9% in the third quarter of 2024. On a year-by-year basis, however, Argentina’s real GDP decreased
by 2.1% since the third quarter of 2023. The IMF expects Argentina’s economy to grow by 5.0% in 2025, driven by improved access to
credit, falling inflation, and deregulation. However, we cannot guarantee that this estimate will be met.

The current Argentine administration
faces significant macroeconomic challenges, such as reducing the inflation rate, achieving commercial and fiscal surpluses, accumulating
reserves, supporting the peso, further eliminating exchange controls, refinancing debt owed to private creditors, and improving the competitiveness
of the Argentine economy. Since the current Argentine administration took office, a large number of measures aimed at deregulating the
Argentine economy and limiting government intervention in the private sector have been implemented, including the suspension of public
work tenders and reduction in energy and transport subsidies, and it is expected that further measures will be adopted in the future.
However, several of these measures are being challenged in Congress and submitted to judicial proceedings.

The Argentine macroeconomic
environment, remains vulnerable, as reflected by the following economic conditions: (i) inflation remains high reaching 117.8% in 2024,
but its levels are expected to be lower in the future; (ii) poverty and extreme poverty remain high, reaching 38.1% and 8.2%, respectively,
during the second semester of 2024; (iii) investment as