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A minimum of 16 individuals have lost their lives after a enormous fire started at a clothing factory in Bangladesh, with emergency services stating that the fatality count could climb.

Sixteen bodies have been recovered but were incinerated impossible to identify, the fire department said.

Grief-stricken relatives assembled outside the four-level factory in Dhaka's Mirpur area on that day in seeking their family members still unaccounted for.

The blaze, which started at the factory around lunchtime, was put out after multiple hours. But an adjacent 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 fully extinguished, journalistic accounts said.

Fire service officials have not established which of the two buildings caught fire first.

According to eyewitnesses, the chemical warehouse stored bleaching powder, plastic and hydrogen peroxide, all of which can worsen fires. Plastic also releases toxic fumes when combusted.

Security personnel are still trying to locate the owners of the factory and the warehouse, emergency services head the fire service official told reporters.

An inquiry on whether the warehouse was running according to regulations is also ongoing, he mentioned.

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

Included in the crowd is a man searching desperately for his daughter, his loved one.

"When I learned of the fire, I hurried to the scene. But I still have been unable to find her... I just want my loved one back," he stated to reporters.

The devastating event has once again underscored the hazardous conditions affecting Bangladesh's apparel manufacturing, which engages countless of workers and is a significant contributor to export earnings for the country.