Need pagination to Category page

Yo!

I really need pagination to this piece of code.
The whole thing has to be in the loop, right?

Never seen this kind of php code

<div class="newslist">
    <!--Display only the latest 3 posts-->
    <?php $loopcounter=0; ?>
    <?php while (have_posts()) : the_post(); $loopcounter++; ?>
    <?php if ($loopcounter < 4 ) { ?>
    <div class="new">
        <div class="catphoto"><?php the_post_thumbnail(); ?></div>
        <div class="catdecription">
             <?php $categories = get_the_category();
                   $cat_name = $categories[0]->cat_name; ?>

                   <?php if ($cat_name=='THE LATEST NEWS') { ?>
        <div class="cattitle"><a class="linktitle" href="<?php the_permalink() ?>" rel="bookmark" title=" <?php the_title(); ?>"><?php the_time('Y-m-d') ?> <?php the_title(); ?></a></div> <?php } ?>
        <!--Show only the first 100words of the post, and link it to the whole post-->
            <div class="catcontent">
            <?php if(preg_match('/<!--more-->/', $post->post_content)) : ?>
            <?php the_content(); ?>
            <?php else : ?>
            <a href="<?php the_permalink(); ?>">
            <?php the_content_rss('', TRUE, '', 100); ?>
            </a>
            <?php endif; ?> </div>
        </div>
        <div class="clearfix"></div>
    </div>
    <?php }  ?>
    <?php endwhile; ?>

</div>