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At least 16 persons have lost their lives after a huge fire started at a garment factory in Bangladesh, with authorities stating that the death toll could increase.

A total of sixteen bodies have been retrieved but were charred beyond recognition, the firefighters stated.

Distraught relatives assembled outside the multi-story factory in Mirpur, Dhaka on that day in search of their loved ones still unaccounted for.

The fire, which started at the factory around lunchtime, was put out after three hours. But an nearby chemical warehouse kept burning, officials reported.

Until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been entirely put out, journalistic accounts reported.

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

According to witnesses, the chemical warehouse stored industrial bleaches, plastic materials and industrial peroxide, all of which can intensify fires. Plastic also emits hazardous smoke when ignited.

Security personnel are still searching for the operators of the factory and the warehouse, fire service director the fire service official informed the media.

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

Crying family members stood outside the charred buildings, many of them holding photographs of their missing relatives.

Present at the scene is a man seeking urgently for his daughter, his loved one.

"When I was informed of the fire, I rushed here. But I still cannot locate her... I just want my daughter back," he told journalists.

The tragic incident has yet again underscored the safety concerns plaguing Bangladesh's clothing sector, which engages countless of workers and is a crucial contributor to foreign revenue for the South Asian economy.