"But at the time of the games, the situation will be different, and the measures being taken will be different", he said.
Pound, a veteran Canadian Olympic official and inaugural president of the World Anti-Doping Agency, repeated what the IOC and local organisers have been saying for months: the games will be cancelled if they can not be held this time.
In a speech opening a new Parliament session, Suga said his government would revise laws to make anti-virus measures enforceable with penalties and compensation.
News presenters shed tears and crowds erupt in delight in September as the International Olympic Committee names Tokyo the host of the 2020 Games.
Despite mounting public pressure for a cancellation amid a dramatic spike in coronavirus cases worldwide, the International Olympic Committee and organizers have already said another postponement is impossible, leaving either cancellation or opening the games on July 23 as the only options.
The country last week expanded a state of emergency to cover seven regions, including the capital Tokyo and its surrounding prefectures.
An opinion poll by Kyodo News earlier this month found that 80 percent of respondents want a cancellation or postponement of the games.
'If I was sitting in the shoes of the organising committee in Tokyo, I would be making plans for a cancellation and I'm sure they have plans for a cancellation. They also say such punishment is pointless when hospitals are running out of beds and forcing hundreds of people to wait at home.
A 53-page interim report released in December outlines measures including a ban on supporters cheering, regular testing for athletes and limited stays at the Olympic village. The Tokyo Olympics, originally set for 2020 but postponed due to the novel coronavirus, is set to take place in six months.
Organisers have said a decision on spectators will come in February or March.
The numbers of spectators, athletes and events themselves may have to be curtailed.
Efforts to reduce costs by cutting back on athlete welcome ceremonies and other trimmings have produced only minimal savings, though organisers say they have managed to keep all domestic sponsors on board. Disruption to training and competition schedules is also causing huge uncertainty. The Games were previously cancelled in 1916, 1940 and 1944 - each due to the World Wars.
But Pound is still convinced a scaled-down Olympics will happen this year, and the opening and closing ceremonies "will be just as exciting but just with not quite so many people on the track".
Tokyo 2020 chiefs are betting the public mood will begin to swing in the Games' favour in the months ahead, when winter is over and vaccinations ramp up.
Health ministry official Kazuho Taguchi on Wednesday echoed comments from Prime Minister Yoshihide Suga that the Government was continuing with preparations as planned.
The government has secured sufficient vaccine doses for all its 126 million residents, but so far just Pfizer has applied for approval, and the jabs are not expected to start until late February.