 Gen Musharraf said the army was the saviour of Pakistan |
Gen Musharraf passed a ceremonial baton to Gen Ashfaq Pervez Kiani at the army's headquarters.
In his farewell address, Gen Musharraf said the army was his "life" and he was proud to have been the commander of this "great force".
He had been under huge pressure to quit as army chief and is due to be sworn in as civilian president on Thursday.
The move will mean an end to nine years of military rule in Pakistan.
'Half a century'
Dressed in full military uniform, Gen Musharraf arrived at the ceremony with a baton under his left arm.
On his arrival, he was greeted by Gen Kiani and inspected a guard of honour.
A military band played Pakistan's national anthem and the ceremony began with a recitation from the Koran.
The colourful ceremony was shown live on PTV, Pakistan's national channel.
"I am bidding farewell to the army after having been in uniform for 46 years," Gen Musharraf said in his address.
"This army is my life, my passion. I love this army, and this relationship will continue, although I will not be in uniform," he said.
Gen Musharraf said it was difficult to describe his emotions.
"When one has lived half a century with a family, a family like the army, united, and fully loyal... then leaving it is bound to bring on emotions. But such is the system of life. People come, and they have to go. Good things also come to an end. Everything is mortal," he said.
"I am fortunate to have commanded the best army in the world. This army is an integrating force, the saviour of Pakistan," Gen Musharraf said.
"Without this army, the entity of Pakistan cannot exist".
'Excellent soldier'
Gen Musharraf expressed full faith in the ability of his successor, Gen Kiani, to lead the force.
"He's an excellent soldier and I can say with full confidence that under his command, the armed forces will achieve great heights," Gen Musharraf said.
He had designated Gen Kiani, a former head of the intelligence services, as his successor in October.
The most serious pressure on the president to give up his uniform had come from the United States, his main international backer.
Washington has grown concerned in recent months at the army's inability to rein in pro-Taleban militants and by Gen Musharraf's growing unpopularity.
As a civilian leader, Gen Musharraf will still have considerable powers, including the ability to sack a civilian government.
He imposed emergency rule on 3 November in order, he said, to control an unruly judiciary and deal with the growing threat from Islamist militants.
General elections are to be held on 8 January, but Gen Musharraf has yet to say when the emergency will be lifted.
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