We have an instance of 500-1000 users and we face slowness more often while reloading pages. what will be the pros and cons of increasing JVM to 16GB ? Will it help in anyway?
There is no way to know if increasing memory will help from the information you have given us here.
You have not said what is slow in the process of using a Jira page, and memory is a factor in only part of it. If the slowness is not in the part the memory is involved in, then throwing more memory at it will do precisely nothing.
Start by using the developer tools in your browser to see what is slow when rendering the pages. Look at what exactly is "slow" - what page is it? What is the user doing? Is it a board with too many issues? An issue view? The navigatoer? Are admin pages slow? It doesn't matter how fast a server is if your browser is the problem.
Until you can say where the slowness actually is, you can't begin to guess at an improvement.
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