Pakistan Prime Minister Mir Zafarullah Khan Jamali on Saturday resigned, putting at rest months of speculation about his strained relations with President Gen Pervez Musharraf.

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Media reports have suggested that Musharraf was unhappy with Jamali's performance and his failure to endorse his policies strongly.

The prime minister decided to resign during a meeting with Musharraf in the presence of PML-Q chief Chaudhry Shujat Hussain, NNI news agency reported.

"Jamali has tendered his resignation to President Pervez Musharraf, which he has accepted," senator Mohammed Ali Durrani of the ruling National Alliance led by PML-Q said.

The 60-year-old soft-spoken Jamali was sworn-in as prime minister in November 2002, a month after elections were held to formally return the country to civilian rule following three years of military dictatorship.

The resignation came even as Pakistan Foreign Secretary Riaz Khokhar arrived in New Delhi to kickstart the composite dialogue agreed during the then prime minister Atal Bihari Vajpayee's visit to Islamabad in January 2004.