why pagination not working in page template

Because you override global WP_Query with your own query_posts and you ignore page in there – all you set is showposts (which is deprecated and from wp 2.1 you should use posts_per_page instead).

But to be honest, you shouldn’t use query_posts either (especially in this case).

So how to do this? Use pre_get_posts filter to modify global query according to your needs.

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