In the fiscal year 2051/52, the first product exported from Nepal was carpets. At that time, carpets worth 13 to 14 billion were exported annually. Whereas, the total annual budget announced by the then Finance Minister Mahesh Acharya through an ordinance for the fiscal year 2051/52 was 42.69 billion. That is, more than 33 percent of Nepal's total budget came into Nepal from export trade. At that time, the carpet industry was the main source of foreign exchange.

About 60 percent of the export trade was carpets. The main trade destination for Nepali carpets was Germany. Carpets were also exported to countries including the United States. However, the message that carpets were woven by child labor in Nepal was continuously broadcast. Foreign media was also involved in it. Various organizations in Nepal were raising questions in national/international forums about carpet workers and child labor. The government itself had raised issues such as increased garbage in the Kathmandu Valley and shortage of drinking water due to carpet factories. Some industrialists had been losing confidence in exports due to personal interests in the name of making quick profits. Some carpet factories had been relocated to areas near the valley, including Makwanpur, on the government's instructions. In a way, almost all the forces seemed to be the same regarding carpet production and export. Even though the government pretended to facilitate, it was itself sending a negative message. Industrialists had accused social organizations and leaders of exaggerating the issue of carpets. Some businessmen claimed that Indian carpets were exported through the Birgunj border crossing as Nepali. This was also confirmed by the 15 percent increase in carpet exports from Birgunj. Indian carpets were also seized when they were trying to export from Birgunj as Nepali products. At that time, thousands of people from the Kathmandu Valley alone were employed in carpet factories. The country was earning foreign exchange through export trade.

But as the negative message was continuously spread, carpet production and export gradually decreased and by the fiscal year 2052/53, the size of the trade had decreased to 10 billion per year. In 2051/052, the annual export of carpets was 33 lakh 25 thousand 123 square meters. In two years, i.e. in 2053/54, it decreased to 28 lakh 91 thousand 225 square meters. The Trade Promotion Center had presented data showing that Nepal's carpet export trade was gradually decreasing. In the first four months of the fiscal year 2013/14, 986,071 square meters of carpets were exported, while in the four months of the fiscal year 2014/15, 852,488 square meters were exported. The Central Carpet Industry Association had stated that the results shown in the statistics were higher than the actual export results.

By the end of the fiscal year 2014/15, carpet orders had decreased significantly. Export and Central Carpet Industry Association President Jafat Ahmed had said that many industries had closed down due to the decrease in orders, and 1,200 industries were also operating in a critical condition.

Claiming that foreign carpets had started being exported as Nepali, Chairman Ahmed had demanded an investigation into this. One businessman analyzed that the declining quality of Nepali carpets and the recession in the German economy had also led to a decline in export trade. Germany was the main export destination for Nepali carpets. The businessman said that the quality had deteriorated after some traders sent low-quality carpets at the border and labeled them as Nepali carpets. There were voices that the government was supporting its own business by sending industrialists abroad to promote trade. The then Joint Secretary of the Ministry of Commerce, Dr. Govinda Regmi, had said that if the government did not take any initiative, it would have a huge impact on the country's economy. The president of the association, Ahmed, had expressed concern that all the industries would close if the reputation of carpets could not be preserved. He said that Nepal should have a Ministry of Handicrafts and that carpets should be produced to compete in the American market. He claimed that if quality carpets were produced, they could compete in the American market.

In the context of the collapse of the carpet industry, which was a leader in Nepal's export trade, earning foreign exchange and providing employment to thousands, the news prepared by journalist Saroj Aryal was published in Kantipur Daily on 2054 Poush 8 under the title 'Decline in carpet exports for 6 months'. At that time, after carpets, pashmina was another important product that Nepal was exporting. Now both these products have become operational. According to the data of the Customs Department, Nepal's trade deficit has reached 1443.67 billion in the 10 months of the current fiscal year. During this period, the Customs Department has informed that 248.96 billion was exported out of 1692.64 billion imported from various countries.