In a nationally-televised address, Musharraf threw the bombshell at the end of his one-hour speech: "After viewing the situation and consulting legal advisers and political allies, with their advice I have decided to resign," the former army general said. "I leave my future in the hands of the people."

The announcement, unprecedented by a Pakistani president or prime minister, came as a happy surprise to many in the country, where hundreds of people quickly took to the streets of cities and towns to express their jubilation and give out sweets to mark the end of Musharraf's nine-year rule.

Many had expected the president -- who had come to power in a military coup in 1999 -- to announce he would take action to counter the ruling coalition government, which had united to impeach him in parliament on accusations of abusing his power and violating the constitution.

They had expected him to fight to remain in power by using his presidential authority of dissolving parliament and/or the government, which was formed in February after general elections brought his critics to power.

The ruling coalition had apparently given Musharraf a chance to step down gracefully or face serious charges, including conspiring to destabilize the government elected in February, illegally removing the country's top judges in November 2007, and failing to provide sufficient security to former Prime Minister Benazir Bhutto before her assassination last December.

Nevertheless, commentators said his resignation, handed to the House speaker, was imminent after he found himself alone when his domestic political allies, the army that he had served for 46 years, and his foreign allies in the U.S.-led "war on terror" virtually abandoned him when they found that growing criticism and legal procedures to impeach him was making him more of a liability.

The president was greatly weakened last year after he quit as the head of the powerful army, handing the reins of command to Gen. Ashfaq Kayani, who in turn made a substantial shift to distance the army from politics and support democracy; thus, refusing to back the most unpopular president in Pakistan's history.

Musharraf gained many enemies when he allied himself with the United States in its war on terror after the Sept. 11, 2001, attacks on the United States, but his standing took the biggest beating when he sacked Pakistan's chief justice in March 2007 and dismissed some 60 judges eight months later to stop them from annulling his controversial re-election as president.

Critics say the George W. Bush administration had also ditched Musharraf after concluding that his role as a "good friend" had finished and needed a more reliable president in Pakistan, Afghanistan's neighbor, to support its war on terror.

Reacting to Musharraf's resignation, U.S. Secretary of State Condoleezza Rice expressed Washington's "deep gratitude" for being America's friend and "one of the world's most committed partners in the war against terrorism and extremism."

In a statement, she said the United States "strongly" supports the civilian government and believes that "respect for the democratic and constitutional processes in that country is fundamental to Pakistan's future and its fight against terrorism."

Rice had on Sunday ruled out giving asylum to Musharraf, saying the matter was "not on the table and [we] just want to keep our focus on what we must do with the democratic government of Pakistan," especially in the fight against terrorism.

Pakistan's Taliban movement, meanwhile, welcomed Musharraf's resignation and declared a unilateral truce in targeting the country's troops and government installations until the government "sets a new policy" in dealing with the Islamist militants, which have been locked in a war with the army in the tribal areas bordering Afghanistan.

Commentators in Islamabad speculated on the fate of 65-year-old Musharraf, who has escaped three known assassination attempts. They guessed he might have no choice but to remain in Pakistan without "adequate" security after his friends in the United States, Saudi Arabia and Turkey have virtually snubbed him.

Pundits say his resignation may have averted exacerbating the political crisis that has been plaguing the country, but stepping down will not resolve the many political, economic and security problems.

While the constitution gives the senate speaker the authority as acting president until parliament chooses a new head-of-state, the ruling coalition partners – Pakistan People's Party (PPP) and Pakistan Muslim League-Nawaz (PML-N) – are widely predicted to embark on a power struggle over who would assume the vacant top position.

The fragile alliance between Nawaz Sharif's PML-N and the PPP, headed by Bhutto's widower Asif Zardari, may break after their common desire to remove Musharraf has now been realized, analysts say.

Reinstating the judges that Musharraf fired is a major contention between the two parties. Sharif wants them to put their judicial coats back on, while Zardari fears the deposed judiciary would revoke Musharraf's decree that granted him and his slain wife an amnesty that removed corruption cases against them.

Analysts say Musharraf's resignation is the start of a new era for Pakistan, but where the political drama is heading remains to be seen.