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WONG: After receiving pressure of impeachment charges by the governing coalition, Musharraf resigns. He was accused of violating the constitution and gross misconduct. The Pakistani people are celebrating, showing relief but also caution for the future. STORY: Celebrations on the streets of Islamabad as President Musharraf announces his resignation. [Pervez Musharraf, Former Pakistani President]: "After consultations with legal advisers and close political supporters and on their advice, I'm taking the decision of resigning from my office." In an address to the nation which lasted almost an hour, Musharraf struck a defiant, yet emotional tone. His decision to step down follows increased pressure from ruling coalition parties which had announced that impeachment charges would be brought against him. They accused Musharraf of violating the constitution and gross misconduct. [Bilawal Bhutto Zardari, Ruling Pakistan Peoples Party]: "I see that the biggest hurdle in the way of democracy has been removed. And I am sure we can get on with solving all the issues of our country." Musharraf's departure has signaled joy for many, although some are cautious about what they can expect from a new president. [Irshuad Hussain, Shopkeeper]: "The country is now faced with grave challenges. The coalition government should not get the impression that now that Musharraf has gone all problems are solved. There are too many problems." After ruling Pakistan almost singlehandedly for nine years, Musharraf's early presidency was dominated by ongoing tensions with India over Kashmir. Then came the 9/11 attacks - when Musharraf signed up for the U.S. "war on terror" campaign it marked a shift in Pakistan's relations not just with America but the rest of the world. But his decision to order security forces to storm the Red Mosque last year, which resulted in the death of more than a hundred people and his attempt to oust the country's Chief Justice, which led to huge protests meant his future as leader was severely under threat. Last year he was forced to give up control of the army. Then in November he imposed a state of emergency to force his re-election to another five-year term through the Supreme Court, but his political allies were trounced at the February polls. Pervez Musharraf's departure comes at a fragile time for Pakistan - as well as the ongoing political crisis, the country's economic fortunes have significantly worsened - in July annual inflation hit more than 24 per cent. In the next thirty days an election will take place, until then the Chairman of the Senate, Mohammadmian Soomro, will become acting president.