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No fewer than 16 people have perished after a enormous fire erupted at a clothing factory in Bangladesh, with emergency services stating that the fatality count could increase.

A total of sixteen bodies have been found but were incinerated impossible to identify, the fire department said.

Grief-stricken relatives converged outside the four-storey factory in Dhaka's Mirpur area on Tuesday in seeking their family members still not found.

The inferno, which started at the factory around lunchtime, was brought under control after several hours. But an nearby chemical warehouse continued to burn, emergency services confirmed.

Until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been completely doused, news sources indicated.

Emergency responders have not ascertained which of the two buildings ignited initially.

According to witnesses, the chemical warehouse stored bleaching powder, plastic materials and chemical peroxide, all of which can intensify fires. Plastic also releases toxic fumes when ignited.

Police and military officers are still trying to locate the proprietors of the factory and the warehouse, emergency services head the department director informed journalists.

An inquiry on whether the warehouse was operating legally is also in progress, he noted.

Weeping family members stood outside the fire-damaged buildings, many of them holding photographs of their lost relatives.

Included in the crowd is a man searching desperately for his daughter, his loved one.

"When I learned of the fire, I rushed here. But I still cannot locate her... I just want my loved one back," he told journalists.

The devastating event has once again emphasized the hazardous conditions affecting Bangladesh's garment industry, which engages numerous of workers and is a significant source of foreign revenue for the nation.