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No fewer than 16 individuals have lost their lives after a massive fire erupted at a garment factory in Bangladesh, with officials stating that the fatality count could climb.

Sixteen bodies have been retrieved but were charred beyond recognition, the fire department said.

Grief-stricken relatives converged outside the multi-story factory in the Mirpur district of Dhaka on Tuesday in looking for their dear ones still unaccounted for.

The inferno, which erupted at the factory around midday, was put out after multiple hours. But an nearby chemical warehouse kept burning, authorities confirmed.

As late as 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been entirely put out, media reports reported.

Fire department authorities have not determined which of the two buildings ignited initially.

Based on witnesses, the chemical warehouse contained industrial bleaches, plastic and chemical peroxide, all of which can accelerate fires. Plastic also produces poisonous gases when ignited.

Security personnel are still searching for the proprietors of the factory and the warehouse, fire department chief the fire service official told the media.

An inquiry on whether the warehouse was running according to regulations is also currently underway, he noted.

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

Among them is a man seeking urgently for his daughter, his family member.

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

The devastating event has another time highlighted the hazardous conditions facing Bangladesh's apparel manufacturing, which provides jobs for millions of workers and is a crucial provider of foreign revenue for the South Asian economy.