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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 emergency services stating that the fatality count could rise.

A total of sixteen bodies have been recovered but were charred impossible to identify, the fire department stated.

Grief-stricken relatives converged outside the four-storey factory in Mirpur, Dhaka on that day in seeking their dear ones still unaccounted for.

The fire, which erupted at the factory around noon, was put out after three hours. But an neighboring chemical warehouse remained ablaze, officials confirmed.

As late as 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been completely doused, media reports said.

Fire department authorities have not ascertained which of the two buildings ignited initially.

According to witnesses, the chemical warehouse stored bleaching powder, plastic and hydrogen peroxide, all of which can intensify fires. Plastic also releases poisonous gases when ignited.

Law enforcement and armed forces are still searching for the owners of the factory and the warehouse, emergency services head the fire service official briefed reporters.

An inquiry on whether the warehouse was running according to regulations is also currently underway, he noted.

Crying family members stood outside the charred buildings, many of them grasping photographs of their missing relatives.

Present at the scene is a man searching desperately for his daughter, Farzana Akhter.

"When I learned of the fire, I came running. But I still cannot locate her... I just want my daughter back," he stated to news media.

The devastating event has yet again highlighted the hazardous conditions plaguing Bangladesh's apparel manufacturing, which employs millions of workers and is a significant source of export earnings for the South Asian economy.