Page 2 and older posts displaying posts from page 1

I created a page template that will display posts from 1 specific category. The template calls to a custom loop page that I created. The first page works fine, but when I click on page 2 or older, it displays posts from only the first page. Here’s the page: http://goo.gl/79Z6N

Here is the loop file: http://goo.gl/ADvJ0

I’m using /%postname%/ as my permalink.

Please help me find a solution.

Thank you