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At least 16 persons have died after a huge fire broke out at a clothing factory in Bangladesh, with authorities cautioning that the number of victims could climb.

A total of sixteen bodies have been retrieved but were charred beyond recognition, the fire department reported.

Distraught relatives gathered outside the four-level factory in Dhaka's Mirpur area on Tuesday in seeking their loved ones still missing.

The fire, which broke out at the factory around noon, was put out after several hours. But an nearby chemical warehouse remained ablaze, authorities reported.

Up until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been fully extinguished, media reports indicated.

Emergency responders have not ascertained which of the two buildings was the origin point.

Based on bystanders, the chemical warehouse stored chemical bleaching agents, plastic materials and industrial peroxide, all of which can worsen fires. Synthetic materials also produces hazardous smoke when burned.

Police and military officers are still searching for the operators of the factory and the warehouse, emergency services head the fire service official briefed journalists.

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

Weeping family members gathered outside the fire-damaged buildings, many of them grasping photographs of their missing 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 have been unable to find her... I just want my loved one back," he expressed to reporters.

The catastrophic occurrence has another time underscored the safety concerns plaguing Bangladesh's apparel manufacturing, which employs countless of workers and is a crucial source of foreign revenue for the nation.