Extremism is the biggest threat confronting Pakistan, President Pervez Musharraf [Images] said in his farewell address on Wednesday to the top commanders of the army.

"The army is engaged in a national effort to defeat extremism, which is the biggest threat to this country. I praise all ranks of the army who have made the ultimate sacrifice for the country," Musharraf told a conference of corps commanders at the General Headquarters in the nearby garrison city of Rawalpindi.

In several recent interactions with the public and media, Musharraf, who on Wednesday stepped down as army chief, has said that internal threats like extremism and militancy pose a greater danger to Pakistan than any external threat.

"I leave the army very satisfied that it is in very good shape, fully capable and highly motivated to meet all challenges," said the military ruler, who was chairing his last conference as the army chief.

Earlier in the day, Musharraf formally handed over the command of the army to former Inter-Services Intelligence agency chief Gen Ashfaq Pervez Kiyani at a military ceremony in the General Headquarters.

In the evening, the defence ministry issued the formal notification on Musharraf's retirement as army chief and the appointment of Kiyani to the post.

The notification, which was sent to the General Headquarters, Prime Minister's House, presidency and the federal government, said Kiyani will take up his new assignment from November 29.

Kiyani was last month promoted to the rank of general and made vice chief of the army by Musharraf. During the corps commanders conference, Musharraf thanked the army top brass for 'their loyalty and support to him' during his tenure as army chief.

"This is the highest decision-making forum for the Pakistan Army and I always received valuable inputs and counsel from it," he said.

Referring to his tenure of over nine years, Musharraf said the country had 'progressed well since 1999 and there was a quantum leap in all fields ranging from industry to agriculture and from infrastructure development to the telecom sector.'