Khan will replace Tariq Bajwa who has been appointed as Secretary Economic Affairs Division (EAD) with immediate effect.
In a major shake-up, the whole team of FBR has been changed by the government.
The current EAD Secretary Saleem Sethi has been posted as the chairman of National Commission for Governmental Reforms. He will also act as alternate governor to the finance minister on the World Bank Board of Governors.
According to a statement issued by the Finance Ministry, Nisar Muhammad would be the new chairman FBR and his core team will comprise Rehmatullah Khan Wazir as new Member IR Policy, Waqar Ahmed, Member Administration, Nasir Masroor Ahmed, Member Customs, and Dr Muhammad Irshad, Member IR Operations. Nisar Muhammad will also be secretary of the Revenue Division.