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

A total of sixteen bodies have been retrieved but were charred beyond recognition, the fire department said.

Distraught relatives gathered outside the four-level factory in the Mirpur district of Dhaka on Tuesday in looking for their family members still unaccounted for.

The fire, which broke out at the factory around noon, was brought under control after several hours. But an adjacent chemical warehouse continued to burn, emergency services reported.

Until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been entirely put out, news sources said.

Emergency responders have not determined which of the two buildings ignited initially.

According to bystanders, the chemical warehouse contained chemical bleaching agents, synthetic polymers and hydrogen peroxide, all of which can accelerate fires. Plastic also produces poisonous gases when burned.

Law enforcement and armed forces are still attempting to find the owners of the factory and the warehouse, emergency services head the department director told journalists.

An investigation on whether the warehouse was functioning with proper authorization is also in progress, he mentioned.

Crying family members gathered outside the burned buildings, many of them holding photographs of their lost relatives.

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

"When I heard about the fire, I hurried to the scene. But I still cannot locate her... I just want my child back," he told reporters.

The devastating event has once again underscored the security issues facing Bangladesh's clothing sector, which employs numerous of workers and is a crucial source of foreign revenue for the South Asian economy.