The history of Pak Oriental Rugs stems from its roots in Lahore, Pakistan, where factories of the owners father still stand. In the 1970s, the family business had expanded to larger scale manufacturing and export to Europe. Retail outlets were established in Karachi, Lahore, and Islamabad, the three main cities in Pakistan.

Anjum Butt, the owner of Pak Oriental Rugs, Inc. based out of San Francisco, being quite ambitious, moved to Europe at a young age, he was only 18.  While in Europe he managed to make contacts with the most well known rug retailers throughout the continent and began to supply his family's merchandise to them at wholesale costs. He helped expand the family business throughout Europe starting from Frankfurt (Germany), Copenhagen (Denmark), Brussels (Belgium), and lastly Stockholm (Sweden).

In April 1979 Anjum took a marketing trip throughout America. He ended up falling in love with San Francisco. So after 10 years of success and many established accounts in Europe, a shift to the United States was made, establishing Pak Oriental Rugs in California. Based out of a warehouse in Pier 23, in San Francisco, CA, many local retail rug dealers began to buy merchandise from Pak Oriental Rugs because of the unmatched quality and the best prices in town. Eventually Pak Oriental Rugs clientele came to include large department stores such as WJS Sloan Department stores, Macys Department Store, Liberty House Department Store, also many furniture stores, a large list of the most reputable designers in Northern California and many of the top retail rug galleries, throughout America.