Brownlee said a further $1.4 million contribution would be made through NZ Aid to the United Nations Funding Facility For Immediate Stabilisation.
Foreign Minister Gerry Brownlee said the city's capture was an important milestone.
Thousands of civilians were estimated to have been killed in the fight for Mosul, according to Nineveh's provincial council.
Some risked their lives to flee the violence but were targeted by ISIS militants during the escape.
"Honestly, all this death and all this destruction - I don't believe it was worth it", Abbas said. "Now is the time to demonstrate to Isis, through our ongoing commitment, that Iraq and the global coalition are dedicated to defeating the terrorist threat".
While the Iraqi-led coalition is expected to eventually defeat ISIS in the region, the suffering that the terror group has inflicted on Mosul's residents has left a lasting scar on the city and its people.
As part of Britain's involvement in the US-led coalition against the jihadist group, Fallon said British forces had struck 750 targets in the battle for Mosul. Nearly 700,000 remain displaced and are living among 19 emergency camps for Iraq's displaced.
Coalition military officials have pointed to East Mosul which was recaptured in January as evidence that the Iraqi security forces are able to secure big cities with life returning to some sense of normalcy after capture. Gen. D.J. Anderson, told reporters at the Pentagon last week.
This jubilation, however, remains somewhat incomplete mainly because the senior leadership of Daesh has never been captured, nor has any material proof been brought forth verifying the allegations of its demise.
But he acknowledged that West Mosul would present additional challenges.
Mainly composed of Kurdish groups with only a token presence of a few Arab factions, the SDF has repeatedly failed to uproot Daesh from Raqqah and will obviously continue to fail to secure the area given the sequence of events.
"This is a very different army and security forces than existed three years ago", he said.
"They are pretty united right now, there's a lot of celebrating going on Iraq wide right now", he said, while adding, "This country has to pull together, this society has to pull together if they're going to prevent ISIS or the ISIS-next from returning".