How am I supposed to pass the time?

You can pass the time by smoking a pack of cigarettes for as long as you like, similar to the wait function in Fallout 3.

However, make sure you eat/drink coffee before starting on a pack or the game will automatically terminate the smoking scene and warn you that you need to get something to eat/some sleep first. The game will also interrupt the smoking when it's midnight because:

the zombies of the Other World just love hanging out at this time of the day.