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At least 16 people have lost their lives after a enormous fire erupted at a clothing factory in Bangladesh, with officials stating that the fatality count could climb.

16 bodies have been found but were incinerated impossible to identify, the firefighters said.

Distraught relatives gathered outside the four-level factory in Dhaka's Mirpur area on Tuesday in seeking their family members still unaccounted for.

The blaze, which erupted at the factory around midday, was put out after three hours. But an nearby chemical warehouse remained ablaze, emergency services said.

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

Fire department authorities have not ascertained which of the two buildings caught fire first.

Based on witnesses, the chemical warehouse housed industrial bleaches, plastic and hydrogen peroxide, all of which can intensify fires. Polymer products also releases toxic fumes when burned.

Law enforcement and armed forces are still attempting to find the operators of the factory and the warehouse, emergency services head the fire service official briefed the media.

An probe on whether the warehouse was running according to regulations is also in progress, he noted.

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

Included in the crowd is a man searching desperately for his daughter, his family member.

"When I was informed of the fire, I came running. But I still cannot locate her... I just want my loved one back," he told journalists.

The devastating event has yet again highlighted the hazardous conditions affecting Bangladesh's apparel manufacturing, which provides jobs for millions of workers and is a major provider of foreign revenue for the South Asian economy.