There’s some interesting stuff being made in morocco with better dyes and there’s actually a collectors market stuff I don't think this is very old I’d be surprised if it's 50 years old .
As for its use it’s too small to be prayer rug, It doesn't look like part of a saddle bag or horse cover it could be a pillow face or part of a feed bag? Or it could be “tourist” schlock sold to tourists with some kind of exotic story. In Afghanistan they make new saddlebags to sell to ignorant westerners but the way they are made makes them useless and nonfunctional in reality they are just tourist trinkets.
There’s plenty of misinformation in the rug business usually to drive the sale. Back in the 80's and 90's we would see plenty of people purchased rugs sold to them as being from the “Shaw of Iran's personal collection” all I know is a guy that ruled a whole country sure couldn't get a decent quality rug. They would drop by the shop and try to sell their gems only to find out they where poor quality "bizzar" quality rugs.