Paleomagnetic and structural analyses have been conducted on three well‐exposed sections through a 6–8 km thick pile of molassic red beds (Murree formation) in the lowermost tectonic unit of the Hazara‐Kashmir Syntaxis. Micropaleontological age determinations of the lowermost Murree sediments indicate Late Paleocene deposition (55 m.y.). From south to north, the sections are situated in the Jhelum, Neelum (both in Azad Kashmir), and Kaghan (northeastern Pakistan) valleys. Thermal demagnetization experiments suggest that haematite with high unblocking temperatures carries stable characteristic remanence directions. The relationship between finite strain and magnetic fabric was established by mapping deformed reduction spot strain markers and by measuring the anisotropy of magnetic susceptibility (AMS). For the Jhelum valley the weakly tectonized Murree beds are characterized by flattened AMS ellipsoids resulting from diagenetic compaction. Inclination values suggest that the Murree foreland basin started to develop at about 8°N during the early suturing of India and the development of island arcs to the north. India has moved northward by at least 2600 km since collision with Eurasia in the Paleocene. Declination values suggest 45° of clockwise rotation of the block supporting the Murree formation relative to the Indian craton. For the Neelum and Kaghan valleys, quantitative strain mapping shows a progressive increase of deformation northward. NRM directions rotate passively toward the cleavage plane which parallels the foliation of the AMS ellipsoids. NRM directions and AMS ellipsoids are deformed because of superposition of tectonic strain on a primary compactional strain. The AMS pattern is interpreted in light of this superposition, and a regional deformation path from south to north is suggested. A tectonic rotation model is proposed which is consistent with the transport directions around the Hazara‐Kashmir Syntaxis and the rotation of thrust sheets indicated by the NRM data. This model relates the convergent transport directions with the mean indentation direction of India