Someone at my group helped me with the problem. Here're the steps he roughly carried out:
(1) Manually installed glib and additional libraries at $HOME directory - i.e. $HOME/lib, $HOME/include.
(1.1) I think he did this by './configure prefix=$HOME', 'make', 'make install'.
(2) Got rid of `pkg_config` usage, which was causing the problem I outlined originally. Here are his new CLFAGS and LIBS variables:
CFLAGS=-O3 -D_GNU_SOURCE -Wall -std=c99 -I. -I$$HOME/include -I$$HOME/include/glib-2.0 -I$$HOME/lib/glib-2.0/include
LIBS=-lglib-2.0 -lm -lgsl -lgslcblas -L$$HOME/lib -L/usr/local/cuda/lib64 -lcudart
After this, the code compiled without additional problems.