How to add pagination to my code?

Add this to functions.php:

// Pagination
function pagination($pages="", $range = 4)
{
     $showitems = ($range * 2)+1;  
     global $paged;
     if(empty($paged)) $paged = 1;
     if($pages == '')
     {
         global $wp_query;
         $pages = $wp_query->max_num_pages;
         if(!$pages)
         {
             $pages = 1;
         }
     }   
     if(1 != $pages)
     {
         echo "<div class=\"pagination\"><span>Page ".$paged." of ".$pages."</span>";
         if($paged > 2 && $paged > $range+1 && $showitems < $pages) echo "<a href="".get_pagenum_link(1)."">&laquo; First</a>";
         if($paged > 1 && $showitems < $pages) echo "<a href="".get_pagenum_link($paged - 1)."">&lsaquo; Previous</a>";

         for ($i=1; $i <= $pages; $i++)
         {
             if (1 != $pages &&( !($i >= $paged+$range+1 || $i <= $paged-$range-1) || $pages <= $showitems ))
             {
                 echo ($paged == $i)? "<span class=\"current\">".$i."</span>":"<a href="".get_pagenum_link($i)."" class=\"inactive\">".$i."</a>";
             }
         }

         if ($paged < $pages && $showitems < $pages) echo "<a href=\"".get_pagenum_link($paged + 1)."\">Next &rsaquo;</a>";
         if ($paged < $pages-1 &&  $paged+$range-1 < $pages && $showitems < $pages) echo "<a href="".get_pagenum_link($pages)."">Last &raquo;</a>";
         echo "</div>\n";
     }
}

Then grab your paginated links using this:

<?php if (function_exists("pagination")) {
    pagination($loop->max_num_pages);
} ?>