1. Go to Settings>Reading from WP dashboard and then choose how many post to show on per page.
2. Add these line after end of while loop
<?php endwhile; //previous_posts_link( ); //next_posts_link( ); echo paginate_links( ); else: ?>
ANOTHER WAY(Plugin):
WP-Paginate is a simple and flexible pagination plugin which provides users with better navigation on your WordPress site.