Nepal lies in between the most populous countries of the world, India and China

There is also huge potential for hydropower. About 44,000 MW is thought to be economically feasible, which may be contrasted with the 546 MW currently being generated. Until now, Nepal has not been able to exploit much of its potentiality and the people in Nepal still face severe power shortages. In order to harness and develop hydropower, private sectors were involved to carry out small and medium sized hydro power projects. Similarly the government is encouraging private foreign investment in this sector. A number of projects for feasibility studies and development have been recognized. Nepal expects to add approximately 2,537 MW to its generating capacity over the next decade.

There is scope for foreign investment in other areas/sectors also. Tourism is another area with enormous potential. Nepal has spectacular natural assets such as Mount Everest - the top of the world - and seven other peaks of 8,000 metres and higher. It also has a rich cultural heritage and a great diversity of ethnic groups with distinctive traditions: Lumbini in western Nepal is the birthplace of the Buddha, while Bhaktapur in the Kathmandu valley is a perfectly preserved mediaeval town full of Hindu temples. Tremendous opportunities exist in developing tourism / hotel projects in Nepal.