This fatwa (signed by three giant scholars of modern times: Mufti Taqi Usmani, Mufti Abdurrauf Sakkharwi and Mufti Mahmud Ashraf Usmani) was posted in a separate thread, the title of which is rather distasteful in my worthless opinion, hence I am re-posting it here as a new thread.
The translation (unofficial):
An on the on-the-fly translation for those who do not know Urdu:
Originally Posted by omar2006
On August 20, 2008 a fatwa appeared in several newspapers including the Jang newspaper declaring the prevalent Islamic banking system as impermissible, what do the scholars ('ulama) say in regards to it?
(Muhammad Ilyas Kachi)
The fatwa declaring Islamic banking impermissible, which was published in several newspapers, does not mention proofs (dala'il) nor has a separate writing containing proofs appeared. In addition to this, even though the responsible individuals from Jamia Darul 'Ulum Karachi have requested those proofs upon which the fatwa was based and [subsequently] issued, they (i.e., the proofs) have not been provided to them. According to our knowledge, those who have given the fatwa of impermissibility have also not inquired about the full and detailed way [in which the system works] from responsible individuals at Islamic banks and their existing Shari'a advisors.
For this reason, at present, Jamia Darul 'Ulum Karachi remains firm upon its previous fatwa. It is permissible to perform financial transactions with banks which are not based on interest that are working under the supervision of authentic scholars while keeping with the principles of the Shari'a. The profit earned from such transactions is halal (lawful) and it is not interest or haram (unlawful).
And Allah Most High knows best.
[The Eminent Muftis]
Mufti Taqi Usmani
Mufti Afzal Ali Rabbani
Mufti Abdurrauf Sakkharwi
Mufti Mahmud Ashraf Usmani
Mufti Muhammad Abdul Mannan
[Signed 14th (and 15th) of Ramadan, 1429 AH corresponding to September 14, 2008]