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At least 16 persons have perished after a enormous fire erupted at a clothing factory in Bangladesh, with authorities cautioning that the death toll could climb.

A total of sixteen bodies have been found but were charred beyond recognition, the fire service said.

Grief-stricken relatives gathered outside the four-storey factory in Dhaka's Mirpur area on Tuesday in seeking their dear ones still missing.

The inferno, which started at the factory around midday, was brought under control after several hours. But an nearby chemical warehouse kept burning, officials confirmed.

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

Fire department authorities have not ascertained which of the two buildings was the origin point.

According to bystanders, the chemical warehouse housed bleaching powder, plastic materials and industrial peroxide, all of which can worsen fires. Polymer products also releases poisonous gases 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 reporters.

An investigation on whether the warehouse was operating legally is also currently underway, he mentioned.

Tearful family members gathered outside the charred buildings, many of them grasping photographs of their lost relatives.

Among them is a man searching desperately 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 stated to journalists.

The catastrophic occurrence has once again underscored the hazardous conditions affecting Bangladesh's garment industry, which engages numerous of workers and is a significant source of foreign revenue for the South Asian economy.