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At least 16 persons have lost their lives after a huge fire broke out at a apparel factory in Bangladesh, with emergency services warning that the fatality count could climb.

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

Grief-stricken relatives gathered outside the four-level factory in the Mirpur district of Dhaka on that day in search of their loved ones still unaccounted for.

The fire, which broke out at the factory around noon, was brought under control after three hours. But an nearby chemical warehouse remained ablaze, officials reported.

As late as 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been fully extinguished, media reports indicated.

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

Per witnesses, the chemical warehouse contained bleaching powder, synthetic polymers and hydrogen peroxide, all of which can worsen fires. Synthetic materials also emits poisonous gases when burned.

Police and military officers are still trying to locate the proprietors of the factory and the warehouse, emergency services head the fire service official informed reporters.

An investigation on whether the warehouse was functioning with proper authorization is also currently underway, he added.

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

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

"When I was informed of the fire, I came running. But I still have been unable to find her... I just want my loved one back," he told reporters.

The devastating event has another time emphasized the security issues facing Bangladesh's garment industry, which employs millions of workers and is a major source of foreign revenue for the South Asian economy.