UPDATE 2-FACTBOX-Implications of Musharraf's resignation

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ISLAMABAD, Aug 18 (Reuters) - Nuclear-armed Pakistan's beleaguered President Pervez Musharraf announced his resignation on Monday in the face of an impending impeachment motion by the ruling coalition government. Musharraf, 65, came to power in a 1999 coup and has anchored Pakistan's alliance with the United States, especially since Pakistan signed up for the U.S.-led campaign against terrorism after the Sept. 11, 2001, attacks.

He promoted an investor-friendly environment and oversaw good growth and surging stocks until this year.

Following are some of the political, economic and diplomatic implications of his resignation.

INTERNAL POLITICS

* Opposition to Musharraf has bonded rival parties in the coalition government. His departure could see them drift apart.

* The Pakistan People's Party of assassinated former prime minister Benazir Bhutto leads the coalition, with former prime minister Nawaz Sharif's Pakistan Muslim League (Nawaz) its chief partner. The two main civilian parties are old rivals and despite recent cooperation, will compete in the next election.

SECURITY

* The coalition government has vowed full commitment to the campaign against violent militancy. Despite questions over its policy of trying to negotiate with militants, recent operations in the northwest should have reassured Washington and other allies the government will match Musharraf's security efforts.