Jaitley, who is accompanied by Army Chief General Bikram Singh, was briefed by local Army officers about the security situation along the Line of Control and the counter-insurgency operations in the hinterland.
"The Defence Minister visited Headquarters of Chinar Corps where he was given a comprehensive briefing on overall security situation in the Kashmir Valley including the counter-infiltration grid along the LoC and counter-terrorism grid in the hinterland," a defence spokesman said.
"Had a very productive meeting with Arun Jaitley in Srinagar this afternoon. Discussed matters related to both defence and finance with him," Omar wrote on micro-blogging site Twitter.
After the meeting, an official spokesman said the two leaders discussed the current situation on the LoC during the hour-long meeting.
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"Matters relating to preparedness of the state government to conduct upcoming Amarnath Yatra smoothly also came up for discussion," he said.
The Chief Minister shared with Jaitley, who is also Union Finance Minister, certain financial matters relating to the development plan of Jammu and Kashmir, the spokesman said.
The Defence Minister is scheduled to visit forward areas along the Line of Control tomorrow and will interact with commanders and troops, the spokesman said.
He said Jaitley is also scheduled to attend special Unified Headquarters Meeting here tomorrow which will be attended by top officials of the civil administration, police, army and para-military forces.