Parvez Mia, a doctor at the Tongi government hospital, told AFP at least 70 people were injured, many critically.
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About 100 people are believed to have been working at the building when flames tore through the four-storey factory.
He said around 75 people were supposed to work the night shift.
The fire was initially thought to have been triggered by a powerful boiler explosion but officials later said they have found the factory tank intact fuelling speculation that a gas leak could be the reason behind the blast.
More than 1,100 people were killed and 2,500 injured after the collapse of the Rana Plaza building which housed five garment factories in 2013.
Emergency officials feared the death toll could climb after a fire broke out in the Tongi industrial zone about 20 kilometres north of the capital, Dhaka.
“We have removed eight bodies to the hospital and are trying to retrieve a further two”, said Anis Ahamed, a local fire and civil defense chief, told BBC.
It’s the latest in a series of factory disasters in Bangladesh, one of the world’s top garment exporters.
The sector comprises about 5,000 factories employing more than 4 million workers, 80 per cent of whom are women.
It was learnt that the packaging factory caught fire due to boiler explosion.
Labour rights groups urged the Bangladesh government and Western companies to work harder to protect the safety of workers in their supply chains.
The deputy inspector general of factory inspection said that authorities also plan to file cases against the company and its owner for violating building and safety codes.
Saturday was the last working day at the factory before the workers were to go on leave for a week-long holiday for the Islamic festival of Eid al-Adha, which falls on Tuesday.
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The Tampaco Foils factory produces packaging for tobacco and other consumer products, with British American Tobacco and food giant Nestle among its clients.
