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At least 16 people have lost their lives after a enormous fire broke out at a clothing factory in Bangladesh, with authorities cautioning that the fatality count could climb.

Sixteen bodies have been found but were charred unrecognizable, the fire service reported.

Grief-stricken relatives converged outside the four-level factory in Dhaka's Mirpur area on that day in search of their loved ones still not found.

The blaze, which broke out at the factory around lunchtime, was put out after three hours. But an neighboring chemical warehouse remained ablaze, officials confirmed.

Until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been fully extinguished, journalistic accounts reported.

Fire service officials have not determined which of the two buildings ignited initially.

According to eyewitnesses, the chemical warehouse stored bleaching powder, plastic and chemical peroxide, all of which can worsen fires. Synthetic materials also emits hazardous smoke when combusted.

Law enforcement and armed forces are still searching for the proprietors of the factory and the warehouse, fire service director the department director briefed the media.

An investigation on whether the warehouse was running according to regulations is also in progress, he added.

Weeping family members stood outside the fire-damaged buildings, many of them grasping photographs of their missing relatives.

Among them is a man seeking urgently for his daughter, Farzana Akhter.

"When I was informed of the fire, I rushed here. But I still cannot locate her... I just want my daughter back," he told news media.

The tragic incident has yet again emphasized the security issues facing Bangladesh's garment industry, which employs millions of workers and is a significant contributor to foreign revenue for the South Asian economy.