She said this after holding an hour-long meeting with Union Home Minister Rajnath Singh, three days after the appointment of former Intelligence Bureau director Dineshwar Sharma as the special representative who will hold talks with all stakeholders in the state.
"Situation in Jammu and Kashmir has improved as violence has come down a lot," she told reporters here.
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Mehbooba said a detailed discussions was also held on the Rs 80,000 crore package announced by Prime Minister Narendra Modi in 2015.
"Funds are getting released and many development works are going on. Works on AIIMS in the state is also going on," she said.
Apart from the home minister and the chief minister, senior officials of the home ministry and the Jammu and Kashmir government attended the meeting, which lasted for about 45 minutes.
Singh and Mehbooba later had a one-on-one meeting for about 15 minutes.
On Monday, the home minister had announced Sharma's appointment as the government's representative for carrying forward a "sustained dialogue" with all stakeholders in Jammu and Kashmir, in a fresh move aimed at bringing peace to the troubled state.
Singh said on Tuesday that Sharma would decide whom to engage with for a resolution of the Kashmir issue.
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