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At least 16 people have died after a huge fire started at a garment factory in Bangladesh, with emergency services stating that the death toll could rise.

Sixteen bodies have been recovered but were charred unrecognizable, the fire department stated.

Distraught relatives gathered outside the multi-story factory in Dhaka's Mirpur area on that day in seeking their dear ones still unaccounted for.

The inferno, which erupted at the factory around lunchtime, was extinguished after multiple hours. But an adjacent chemical warehouse remained ablaze, officials reported.

Until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been fully extinguished, news sources reported.

Fire service officials have not established which of the two buildings was the origin point.

According to bystanders, the chemical warehouse contained bleaching powder, plastic materials and hydrogen peroxide, all of which can intensify fires. Synthetic materials also emits toxic fumes when ignited.

Police and military officers are still attempting to find the owners of the factory and the warehouse, fire service director the department director informed the media.

An probe on whether the warehouse was operating legally is also in progress, he added.

Weeping family members stood outside the burned buildings, many of them clutching photographs of their unaccounted for relatives.

Included in the crowd is a man looking frantically for his daughter, Farzana Akhter.

"When I learned of the fire, I hurried to the scene. But I still haven't found her... I just want my daughter back," he told news media.

The catastrophic occurrence has once again highlighted the security issues affecting Bangladesh's apparel manufacturing, which employs numerous of workers and is a major contributor to foreign revenue for the country.