Rashid, along with supporters of his Awami Ittehad Party (AIP), assembled near Press Enclave, shouting slogans against the Prime Minister, who is visiting the state.
They later dispersed peacefully.
Modi is visiting Jammu region to inaugurate the longest highway tunnel in the country, which would reduce the travel distance between Jammu and Srinagar by 31 kms.
Speaking to reporters, Rashid, who represents north Kashmir's Langate constituency in the Assembly, said today's protest was to tell the Prime Minister that Kashmir is not about economic packages.
"We need only one package that is resolution of Kashmir dispute," the legislator said.
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