The Private and Boarding Schools Organisation Nepal (PABSON), the largest organisation of private schools, says it has decided to defy the recent government rule requiring private schools to either operate as either trusts or private companies. The Education Regulation enacted on 30 May requires all private schools to register as trusts or companies within six months. Earlier this week government issued a notice appealing to private schools to complete their registration before the start of the new fiscal year in mid-July. The other organisation of private schools, N-PABSON has issued a circular to its members asking them to register under the Company Act. However, N-PABSON, like PABSON, is also against the new provision that requires all private schools to contribute 1.5 percent of their annual income to the Rural Education Development Fund, which is to be used to finance the development of public schools.

Several private school principals told us that they are undecided about what to do, because the fee scale laid down in the regulation would mean they cannot maintain the quality of education that they currently provide.