in your home CMS remove
{{block type="catalog/product_list" category_id="3" template="catalog/product/list.phtml"}}
from your Content area and add
<reference name="content">
<block type="catalog/product_list" name="product_list" template="catalog/product/list.phtml">
<action method="setCategoryId"><category_id>3</category_id></action>
<block type="catalog/product_list_toolbar" name="product_list_toolbar" template="catalog/product/list/toolbar.phtml">
<block type="page/html_pager" name="product_list_toolbar_pager"/>
</block>
<action method="setToolbarBlockName"><name>product_list_toolbar</name></action>
</block>
</reference>
in your left menu Design -> Page Layout under Layout Update XML
now your pagination will come..
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