From : http://webcache.googleusercontent.com/search?q=cache:http://rafalgicgier.com/portfolio/index.php/2012/10/using-paginate-links-with-wp_query/

rafalgicgier.com-pagination.php

<?php
function rgicgier_pagination($query = null) {
    if ( !$query ) {
		global $wp_query;
		$query = $wp_query;
	}
	
	$big = 999999999; // need an unlikely integer

	$pagination = paginate_links( array(
		'base' => str_replace( $big, '%#%', esc_url( get_pagenum_link( $big ) ) ),
		'format' => '?paged=%#%',
		'current' => max( 1, get_query_var( 'paged' ) ),
		'total' => $query->max_num_pages,
		'prev_text' => '&laquo; Previous',
		'next_text' => 'Next &raquo;',
		'type' => 'list',
			) );
	?>

	<div class="pagination">
		<ul>
			<?php echo $pagination; ?>
		</ul>
	</div>
	<!-- ####################################################################################################### -->

	<?php
}