How to add pagination in wordpress

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I have tried as following code in my template file in wordpress… 

 <?php query_posts('showposts=3&post_type=packages&order=ASC&paged='.$paged) ?>

It’s not working… Please help me!!! I am a beginner in wordpress

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  1. first parameter is your seperator between links

    second parameter is previous page

    third parameter is next page

    <div style="text-align:center;">
<?php posts_nav_link(' · ', 'previous page', 'next page'); ?>
</div>

    you can replace them with images as well

    <?php posts_nav_link( ' ', '<img src="' . get_bloginfo('stylesheet_directory') . '/images/prev.jpg" />', '<img src="' . get_bloginfo('stylesheet_directory') . '/images/next.jpg" />' ); ?>