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At least 16 individuals have lost their lives after a huge fire broke out at a garment factory in Bangladesh, with officials stating that the death toll could climb.

A total of sixteen bodies have been retrieved but were incinerated impossible to identify, the fire department said.

Heartbroken relatives gathered outside the multi-story factory in Mirpur, Dhaka on that day in search of their dear ones still missing.

The inferno, which started at the factory around midday, was extinguished after several hours. But an nearby chemical warehouse remained ablaze, emergency services said.

Up until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been completely doused, journalistic accounts reported.

Fire department authorities have not ascertained which of the two buildings was the origin point.

Based on eyewitnesses, the chemical warehouse contained bleaching powder, plastic and chemical peroxide, all of which can intensify fires. Plastic also produces toxic fumes when burned.

Law enforcement and armed forces are still searching for the operators of the factory and the warehouse, fire service director Mohammad Tajul Islam Chowdhury told reporters.

An probe on whether the warehouse was operating legally is also ongoing, he noted.

Weeping family members waited outside the charred buildings, many of them clutching photographs of their lost relatives.

Included in the crowd is a man searching desperately for his daughter, Farzana Akhter.

"When I learned of the fire, I hurried to the scene. But I still cannot locate her... I just want my loved one back," he stated to reporters.

The tragic incident has yet again emphasized the hazardous conditions plaguing Bangladesh's clothing sector, which engages numerous of workers and is a crucial contributor to foreign revenue for the nation.