The National Assembly formally accepted Musharraf's resignation hours after a televised address announcing that he would step down.
The chairman of the upper house of the assembly, Mohammedmian Soomro, will serve as acting president until a successor is chosen.
Under Pakistan's constitution, the president is elected by a majority vote of Pakistan's four provincial assemblies and the two houses of the National Assembly.
Musharraf swept to power in 1999 in a bloodless coup.
He had come under increasing pressure in recent weeks to quit, with the ruling coalition taking steps to impeach him.
"I don't want the people of Pakistan to slide deeper and deeper into uncertainty," Musharraf said in his televised address.
"For the interest of the nation, I have decided to resign as president," he said. "I am not asking for anything. I will let the people of Pakistan decide my future."
Musharraf has been a keen ally of the West in the fight on terror, receiving billions in military aid from the U.S. and launching attacks on militant groups near the country's border with Afghanistan.
In a statement released by U.S. National Security Council spokesman Gordon Johndroe, U.S. President George W. Bush said it was committed to a "strong Pakistan that continues its efforts to strengthen democracy and fight terror."
"President Bush appreciates President Musharraf's efforts in the democratic transition of Pakistan as well as his commitment to fighting al Qaeda and extremist groups," the statement said.
U.S. Secretary of State Condoleezza Rice said he had been a "friend to the United States" and one of the "most committed partners in the war against terrorism and extremism."
"We will continue to work with the Pakistani government and political leaders and urge them to redouble their focus on Pakistan's future and its most urgent needs -- including stemming the growth of extremism, addressing food and energy shortages and improving economic stability," she added.
Posted by Karan Bathena
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