The question of if he physically can or not is irrelevant. At two years old, he's as big as he's going to be, and two pounds is far too small to meet the breed description for a Pom. Since he in no way meets the breed description, he is in no way a breeding candidate.
Poorly bred "teacup" versions of dogs have enough health problems, why are you increasing his risk of health issues by not having him neutered already? That needs to be done, NOW.