Iraq's special forces worked to clear neighbourhoods on the eastern edge of Islamic State-held Mosul as at least 20 people were killed elsewhere in bombings carried out by the group.

Iraqi special forces have begun clearing buildings in districts they entered in eastern Mosul on Friday after pushing out Islamic State militants in their drive to take back the city.

The pace of the fight to retake Mosul from the Islamic State group has slowed as Iraqi forces advancing to the east and south of the city began pushing towards larger villages and encountering civilian populations.

At least 29 people have died after a car bomb ripped through a commercial area in a predominantly Shiite neighbourhood of Baghdad, Iraqi officials said.