This is something that should be really easy, and should be automatic but as I ran into some problems with this I’m posting the way I did it here,
First I got the pagination plugin WP-PageNav and installed it.
Then in my custom post Query added following highlighted part,
$loop = new WP_Query(array(‘category_name’ => ‘news’, ‘posts_per_page’ => 10, ‘paged’ => $paged));
then after the end while of the wp loop I added the following code to add navigation,
echo wp_pagenavi( array( ‘query’ =>$loop ));
Hope this helps.