Should there be MORE or LESS private schools in Nepal?

An article in today's Republica describes the increasing negative focus towards private schools in Nepal, either because parents are having to pay higher fees or because of the government's directive to regulate the private schools in areas such as class sizes. Many of the factors are counterproductive in their attempts to get control.

The article's author comments; "The most damaging of the new rules is that the new Act requires all private schools to have a minimum of 22 students in a single grade, and a minimum of 115 students for a primary school, 165 for a lower secondary and 220 for secondary schools. This new law, if followed judiciously, will make it difficult to open new schools. If you want to open a school and you can find only 21 students for a class, you are out. Research shows that smaller class sizes are assets in schools. In the US some states have laws limiting the class size to not more than 18 students in primary schools. Top quality schools actually have class size limits for maximum students, not minimum students!" "Also the regulation should focus on making the pricing mechanism more transparent, and making it difficult for schools to exploit parents. Here are some ideas: Mandate that schools publish the cost of education in an easily understandable format. That is, all schools should follow the same format, so parents can compare. Standardize the way fees are charged. Don’t allow private schools to charge whatever they want, whenever they want. Allow for increasing fees, but not more than inflation, and show the maximum total cost for parents. Make the admission fee a onetime only policy." The author concludes with; "As for making quality education available to poor students, an obvious way is to improve the quality of government schools, but that is wishful thinking. The best way to provide quality education for the poor is to encourage private schools in rural areas by giving them tax breaks, or giving poor students vouchers to attend private schools. Another idea is to have a policy where the government selects students in a national level exam in the fourth grade, and places students in private schools of their choosing, similar to what they are doing in private medical colleges. Nepal needs more private schools, not less. Private schools are opening up so frequently because there is a higher demand, but smaller supply. They survive because they provide value." 

The most concerning comment is "an obvious way is to improve the quality of government schools, but that is wishful thinking." If this statement carries any weight then Nepal Schools Aid may as well close down NOW! What do you all think?