You can use "os.time" or "os.clock" with "while" loop, i prefer "repeat until" loop because its shorter, but they are expensive because they cost full usage of a single core.
If you need something less demanding, you can use various wrappers like wxLua that i use, but sometimes, some of them also got usage penalty, specially annoying in games, so its best to test them and get what is best for your project.
Or you can relay on OS like Windows to do sleep function, using applications that exist in system32, via Batch or PowerShell, using ">nul" to hide it with "os.execute" or "io.popen", like "ping" (localhost/127.0.0.1) with timeout, "choice" (works with XP, newer versions may be different, i prefer it), "timeout" (/nobreak may be useless because all Windows commands can be canceled with CTRL+C). Downside are limited to given OS and number limitation as well as seconds or miliseconds, running it on eg. Linux may need Wine emulation for Windows (if application are written for it). You can also use "sleep" or "start-sleep" (from PowerShell), but since Lua are standalone, most people prefer pure Lua or wrappers, and you can use what suits your project.