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At least 16 individuals have lost their lives after a huge fire started at a garment factory in Bangladesh, with authorities cautioning that the fatality count could climb.

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

Grief-stricken relatives gathered outside the multi-story factory in Mirpur, Dhaka on that day in seeking their loved ones still unaccounted for.

The fire, which broke out at the factory around lunchtime, was put out after multiple hours. But an adjacent chemical warehouse continued to burn, emergency services confirmed.

Up until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been entirely put out, journalistic accounts indicated.

Fire service officials have not ascertained which of the two buildings ignited initially.

According to bystanders, the chemical warehouse housed bleaching powder, synthetic polymers and chemical peroxide, all of which can intensify fires. Plastic also emits hazardous smoke when ignited.

Security personnel are still trying to locate the proprietors of the factory and the warehouse, fire service director the fire service official told reporters.

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

Weeping family members stood outside the burned buildings, many of them grasping photographs of their missing relatives.

Included in the crowd is a man seeking urgently for his daughter, his family member.

"When I heard about the fire, I came running. But I still have been unable to find her... I just want my daughter back," he told reporters.

The devastating event has yet again underscored the safety concerns plaguing Bangladesh's garment industry, which engages countless of workers and is a significant provider of foreign revenue for the nation.