At least 337 dead are feared dead following a powerful earthquake that rocked Peru, according to the latest report released by the civil defence service. The government has been forced to declare a state of emergency today.More than 1,000 people were injured and tens of thousands of panicked residents flocked onto the streets fearing aftershocks after the 7.9-magnitude quake rattled the country for two terrifying minutes late yesterday.The towns of Pisco, Chincha, and other localities in Peru's southern coastal region were said to be in ruins after the biggest erthquake to hit the South Amrican nation in decades.Buildings left standing had their windows smashed and trees were toppled. In the coastal city of Ica, 300 kilometers south of Lima, the Senor de Luren church collapsed during a service, killing at least four worshipers and injuring dozens.The nearby city of Pisco was also hit hard with many people killed in their homes as roofs caved in. The government sent a convoy of trucks to the region carrying medical supplies, doctors and nurses.The quake and aftershocks sparked panic in capital, Lima, where people camped on the streets for hours after the first big tremor and most buildings were evacuated as a precaution. Cut telephone lines were slowly reconnected in the capital but power and water services continued.The quake struck just offshore at 6:41pm (0511 IST) and prompted evacuations along the Pacific coast because of fears of a tsunami. The Pacific Tsunami Warning Center later lifted its warning.Hospitals around the country were put on high alert amid predictions the death toll would rise and the health ministry made an emergency appeal for blood donations.