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No fewer than 16 people have lost their lives after a enormous fire erupted at a garment factory in Bangladesh, with emergency services stating that the number of victims could increase.

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

Distraught relatives converged outside the multi-story factory in Dhaka's Mirpur area on that day in looking for their family members still unaccounted for.

The blaze, which started at the factory around lunchtime, was brought under control after three hours. But an neighboring chemical warehouse continued to burn, officials reported.

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

Fire service officials have not ascertained which of the two buildings was the origin point.

According to bystanders, the chemical warehouse housed bleaching powder, plastic materials and hydrogen peroxide, all of which can intensify fires. Polymer products also produces hazardous smoke when ignited.

Police and military officers are still trying to locate the operators of the factory and the warehouse, fire department chief the fire service official told journalists.

An inquiry on whether the warehouse was running according to regulations is also ongoing, he added.

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

Included in the crowd is a man searching desperately for his daughter, Farzana Akhter.

"When I learned of the fire, I hurried to the scene. But I still haven't found her... I just want my child back," he told reporters.

The devastating event has once again underscored the safety concerns facing Bangladesh's garment industry, which engages numerous of workers and is a major provider of export earnings for the nation.