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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 authorities cautioning that the death toll could rise.

Sixteen bodies have been retrieved but were burned unrecognizable, the fire service stated.

Distraught relatives gathered outside the four-storey factory in the Mirpur district of Dhaka on Tuesday in looking for their dear ones still unaccounted for.

The blaze, which erupted at the factory around lunchtime, was put out after three hours. But an nearby chemical warehouse remained ablaze, officials reported.

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

Emergency responders have not ascertained which of the two buildings caught fire first.

According to bystanders, the chemical warehouse contained chemical bleaching agents, plastic and industrial peroxide, all of which can accelerate fires. Polymer products also produces poisonous gases when combusted.

Police and military officers are still trying to locate the proprietors of the factory and the warehouse, emergency services head Mohammad Tajul Islam Chowdhury briefed journalists.

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

Tearful family members waited outside the charred buildings, many of them holding photographs of their missing relatives.

Present at the scene is a man seeking urgently for his daughter, his family member.

"When I heard about the fire, I hurried to the scene. But I still haven't found her... I just want my loved one back," he expressed to journalists.

The tragic incident has another time emphasized the security issues affecting Bangladesh's clothing sector, which provides jobs for millions of workers and is a crucial provider of economic income for the South Asian economy.