Pak faces umpteen challenges as Musharraf bids adieu Life has a come a full circle for Pakistan President Parvez Musharraf. After toppling Nawaz Sharif in a bloodless coup almost nine years ago, he himself has resigned as the President. The possible fallouts of his exit are: Domestic Political Scenario The only common thread bonding the political parties in Pakistan has been their opposition to Musharraf. Now that the former President goes into oblivion, the parties may move apart, spelling further trouble for the fragile situation in Pakistan. The two major components of Pakistan’s ruling coalition – PPP and PML-N – have long fed off each other and the recent bonhomie notwithstanding, they will compete against each other in the next elections. Security The government has pledged to root out terrorism and militancy from the country. Recent operations against the extremists in the NWFP might have eased the nerves in Washington. This in turn may result in US supporting the ruling coalition. An important thing witnessed during this Muusharraf saga was army non-interference in the matter. This is a good omen for the government. External Affairs For Pakistan, US seems to be the end all and be-all of its foreign policy. As long as White House is satisfied with Pakistan’s efforts against militancy, the relation would be smooth. There seems to be no imminent threat to the peace process with India as the PP-led Pakistan government has voiced its commitment to the process.. Economy Anything that is a sign of a worsening economy is present in Pakistan. Inflation has gone over the roof and trade and fiscal deficits are widening. Forex reserves have depleted and the Rupee recently touched an all time low. But it is expected to change. This expectations seem realistic as the Stocks saw a rise on Monday, the day when Musharraf decided to reign. What happens next? Following is some detail of what happens when a President steps down as per the Pakistani Constitution: * According to the constitution, the chairman of the Senate, the upper house of Parliament, Mohammadmian Soomro, will become acting President. * A new President will be elected within 30 days, for a five-year term. * A President is elected by an electoral college made up of members of both Houses of Parliament and the four provincial assemblies. * Traditionally in Pakistan, the President has been a figurehead with the prime minister holding most powers although under Musharraf the president was much more powerful. * Musharraf retained the authority to dismiss Parliament and make top military and judicial appointments but the coalition partners have vowed to strip the presidency of those powers and make it a ceremonial post.