ISLAMABAD, Sept 6: The PPP-led coalition government has started search for a new face as the chief of Federal Board of Revenue (FBR), a person who could increase country’s revenue substantially to meet the expected tough conditionalties of the international financial institutions.

Informed sources told Dawn that several senior officials were in the run for the post and have already started seeking contacts with bigwigs in the party for posting to the slot of chairman of the supreme tax machinery.

The government appointed Ahmad Waqar as new chairman FBR by replacing Abdullah Yousuf in July.

Pre-empting his likely replacement the new FBR chairman Ahmad Waqar has already applied for the slot of chairman oil and gas regulatory authority (Ogra), the sources revealed. The post fell vacant in the wake of retirement of the founder chairman Ogra Munir Ahmad, who headed the organisation for two consecutive terms of eight years.

Mr Waqar, who earlier worked as petroleum secretary for almost three years, was elevated to the post of finance secretary but after a short time was removed and posted as secretary Board of Investment (BoI).

The sources said that some retired tax officers, who have affiliations with the PPP, are also under consideration for the slot of chairman FBR.

The sources said the whole tax machinery was put on self-assessment basis as no audit was conducted as the growth in revenue recorded in past years was mainly due to highest-ever import bill, which reached $40 billion, coupled with unexpected growth in services sector.

The new chairman will be facing tough time as he will be required to carry on the implementation of the World Bank funded tax administration reform project, which is expected to be completed by December next year.

The sources said that tax officials have already hinted at delay in meeting the deadline of December 31, 2009. The former reform team headed by Abdullah Yousuf had made no real progress in the reform process, due to which the implementation of the remaining phases of the tax administration reforms programme is expected to be delayed.

According to the sources, the administration of the tax department is virtually controlled by the income tax group due to the apparent support of the former chairman FBR, which has also annoyed the customs and excise group officers.

The sources said that the entire customs department was hijacked by few senior officers, who had connections with the previous military-led government and are posted on the important collectorates with the blessing of the former chairman.

The sources said that this time the IMF was going to dictate to Pakistan to impose stringent taxation measures, including new taxes on the people before committing any loan to the new government, which is facing the highest-ever budget deficit, soaring inflation and falling rupee.

The IMF technical team is arriving here on Sept 12, which would negotiate with Pakistani managers economic policy and future taxation prospects till Sept 24.