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A minimum of 16 persons have lost their lives after a massive fire started at a clothing factory in Bangladesh, with authorities stating that the death toll could increase.

A total of sixteen bodies have been recovered but were charred unrecognizable, the fire service said.

Distraught relatives gathered outside the four-level factory in the Mirpur district of Dhaka on Tuesday in looking for their family members still missing.

The inferno, which broke out at the factory around lunchtime, was extinguished after several hours. But an neighboring chemical warehouse continued to burn, emergency services reported.

Up until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been fully extinguished, journalistic accounts indicated.

Fire department authorities have not determined which of the two buildings ignited initially.

According to bystanders, the chemical warehouse stored industrial bleaches, synthetic polymers and chemical peroxide, all of which can worsen fires. Synthetic materials also releases hazardous smoke when burned.

Security personnel are still searching for the operators of the factory and the warehouse, emergency services head the department director briefed journalists.

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

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

Among them is a man searching desperately for his daughter, his family member.

"When I was informed of the fire, I hurried to the scene. But I still cannot locate her... I just want my loved one back," he told news media.

The tragic incident has once again emphasized the safety concerns facing Bangladesh's clothing sector, which employs millions of workers and is a crucial contributor to export earnings for the South Asian economy.